AUD/USD hits fresh session highs on upbeat China data dump

The recovery in the AUD/USD pair appears to have found some extra support from better-than expected Chinese economic releases, driving the major back towards 0.7650 levels.

AUD/USD takes-out daily pivot

Currently, the AUD/USD pair turns positive and hits fresh session highs at 0.7632, recovering from session lows struck at 0.7611. The Aussie makes a minor-recovery attempt following the release of a slew of crucial China data, all of which came in above market expectations and therefore, eased China slowdown concerns somewhat. China is Australia’s top export destination.

China posted 6.7% GDP growth y/y in the June quarter, slightly higher than the expectations 6.6% reading. Industrial output rose to 6.2% in June, from 6.0% a month earlier, beating expectations of a slowdown to 5.9%. While the Chinese retail sales ticked 10.6% higher, hitting a five-month high.

Moreover, the AUD/USD pair is seen consolidating in a narrow range near multi-week highs as persistent risk-on moods continue to keep the demand for higher-yielding currencies such as the AUD underpinned. However, further upside seems capped as markets digest the latest Chinese data dump amid negative oil prices.

Looking ahead, the major is likely to derive fresh momentum from the US CPI and retail sales data due later today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7653/58 (Jun 24 & Jul 3 High) above which gains could be extended to the next hurdle located at 0.7700 (round number). On the flip side, the immediate support located at 0.7601 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7560 (10-DMA).