AUD/USD: Short squeeze persists ahead of Chinese data

By FXStreet FXStreet (Bali) – AUD/USD is breaking into new highs ahead of today’s China data dump, which will include industrial production, retail sales, and fixed asset investment.

Australian consumer sentiment, USD weakness weigh

AUD/USD has printed its highest level at 0.7080 after gunnign through stops above the 0.7070 resistance area. The bullish momentum in the Aussie was given an additional impetus following a cracking (in words of Bill Evans, Chief Economist at Westpac) consumer sentiment result in Australia, with Evans adding that “apart from the brief surge we saw following last May’s Budget this is the highest print for the Index since January 2014.”

AUD/USD key levels

On the upside, watch 0.7085 as next resistance (daily R2), followed by 0.71 round number and 0.7110 (daily R3, ATR 14 limit up). On the downside, 0.7065 is immediate support down to 0.7055, with a break lower exposing 0.7040 daily pivot.
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Source:: FX Street