Australia remains closely linked to China, and despite the threats of beef exports, AUD benefits from any good news from the Chinese economy. This morning, official data showed China’s industrial output rose 3.9% year-on-year in April (versus + 1.5% expected), while retail sales fell 7.5% (versus -6.0% expected).
From a technical point of view, the AUD / USD remains on a daily chart supported by a rising trend line and is above its 50-day moving average (in blue) as the daily RSI is within its buying range. Readers may therefore consider the potential for further advances over horizontal support of 0.6250. The nearest threshold would be set to horizontal resistance of 0.6570 and another would be set to set to 0.6685 by extension.