AUD/USD starting out bearish below 0.93 handle

FXStreet (Barcelona) - AUD/USD continues on the back-foot into this week below the 0.93 handle.

A number of second tier sentiment survey’s are coming up this week from Australia, but focus will also be on some of China’s numbers. Analysts at TD Securities explained that the Chinese industrial production growth has so far averaged 8.8% Y/Y this year, but picked up to 9.2% in June. “While consensus looks for a modest pullback to 9.1%, we see upside risks and expect a healthier 9.3%, if not even a little higher. This is due to a combination of upbeat PMIs plus what appears to be a seasonal pattern of healthier prints mid-year. For retail sales, growth has been steady around 12.3% Y/Y so far this year, and consensus expects more of the same at 12.5% for July, and again we attach some upside risk”.

AUD/USD indicators turning south

Meanwhile, Valeria Bednarik, chief analyst at FXStreet noted that the hourly chart shows indicators turning south above their midlines and price holding above a flat 20 SMA, limiting the downside at the moment. “In the 4 hours chart however technical readings present a clearer bearish tone, suggesting a new leg lower is still possible. Critical support stands at 0.9260 with a break below it anticipating a probable test of the 0.9180/0.9200 price zone”.

AUD/USD Support / Resistance

Support levels: 0.9260 0.9220 0.9180

Resistance levels: 0.9290 .9330 0.9370