AUD/USD: 0.76 under threat ahead of Chinses data

AUD/USD is currently on the offer and down to test the 20 sma on the 4hr chart with bears challenging the ascending channel's support.

AUD/USD is looking for a break of the 0.76 handle in Tokyo ahead of the chinese data dump coming up later in the shift. "A heavy duty calendar today, with Q2 GDP, industrial production, retail sales and more. Annual GDP growth of 6.6%yr is expected in Q2. External demand and private sector investment is soft, the consumer unable to offset," explained analysts at Westpac.

AUD/USD levels

Valeria Bednarik, chief analyst at FXstreet explained that the pair held above the 0.7600 level and the overall perspective is bullish, as in the 1 hour chart, the price stands above a slightly bullish 20 SMA, whilst the technical indicators bounced from their mid-lines, maintaining a positive tone within bullish territory. "In the 4 hours chart, the 20 SMA heads sharply higher around 0.7605, whilst the RSI indicator hovers above 60. The Momentum  indicator, however, diverges lower and points to break below its mid-line increasing the risk of a downward correction, particularly on a break below 0.7600, the immediate Fibonacci support."