AUDUSD – solid Chinese data further boost post-Fed rally

AUDUSD keeps firm bullish tone for the third consecutive, with better than expected China retail sales and industrial production data adding to positive near-term outlook, established after dovish Fed on Wednesday.

The pair is trading near new 4 ½ month high in early Friday, with bullish technical studies contributing to positive fundamentals and continue to underpin the action.

Bulls probe again through Fibo resistance at 0.6713 (50% retracement of 0.7157/0.6270 fall) and pressure top of thin weekly cloud (0.6743) with firm break of these barriers to confirm bullish signal and open way for extension towards next targets at 0.6818/21 (Fibo 61.8% / July 27 spike high).

Formation of bullish engulfing pattern on weekly chart is also contributing to signals of continuation of the uptrend from 0.6270 (2023 low).

However, Friday’s profit-taking and overbought conditions on daily chart may slow bulls for limited consolidation, which should find firm ground above 0.6610 zone (10DMA / broken Fibo 38.2%) to keep larger bulls in play.

Res: 0.6739; 0.6820; 0.6846; 0.6900
Sup: 0.6692; 0.6654; 0.6610; 0.6575