FXstreet.com (Jakarta) - The AUD/USD fell on worries China's economy is slowing reducing demand for Australian exports. Chinese GDP growth was at 6.1% y/y, the slowest pace in almost a decade. However, stronger-than-expected Chinese industrial production may signal the Chinese economy is starting to recover from its growth slowdown.
Our Globicus leading economic indicator for Australia has not yet indicated a recovery in the Australian economy, said Hans Nilsson, analyst at CMS Forex. The AUD/USD, testing the short-run uptrend today, is currently overbought. If the diagonal support is broken, the pair may fall to the 0.70-area support. There is resistance in the 0.73 area. We move up the stop to 0.6950.
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