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AUD/USD pares early gains, turns flat above 0.67 as focus shifts to US data

AUD/USD pares early gains, turns flat above 0.67 as focus shifts to US data

  • US Dollar Index stays afloat above 99 mark.
  • Reuters sees China's GDP slumping to 4.5% in Q1.
  • Industrial Production in US is expected to continue to contract.

The AUD/USD pair closed the first three days of the week in the positive territory but turned south on Thursday amid resurfacing worries over the coronavirus outbreak having a significant negative impact on the Chinese economy. Although the pair staged a technical rebound and rose to 0.6730 area during the Asian session, it erased its gains and was last seen trading at 0.6718, virtually unchanged on a daily basis.

According to a Reuters poll of 40 economists, the Chinese economy is expected to expand by 4.5% on a yearly basis in the first quarter of 2020 following the 6% growth recorded in the last quarter of 2019. "If Chinese authorities failed to contain the virus from spreading rapidly, growth is expected to slow to 3.5% in the first quarter in a worst-case scenario," Reuters further noted.
 

USD preserves strength ahead of data

In the second half of the day, investors will be paying close attention to the macroeconomic data releases from the US. Industrial Production is expected to continue to contract in January, albeit at a softer pace, and Retail Sales is seen rising by 0.3% to match December's reading.

Additionally, the University of Michigan (UoM) will release its flash estimate of the February Consumer Confidence Index. Ahead of the data, the US Dollar Index is at 99.12, up 0.4% since Monday.

Technical levels to watch for

AUD/USD

OVERVIEW
Today last price 0.6718
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.6719
 
TRENDS
Daily SMA20 0.6761
Daily SMA50 0.6849
Daily SMA100 0.683
Daily SMA200 0.6857
 
LEVELS
Previous Daily High 0.6746
Previous Daily Low 0.6706
Previous Weekly High 0.6775
Previous Weekly Low 0.6662
Previous Monthly High 0.704
Previous Monthly Low 0.6682
Daily Fibonacci 38.2% 0.6721
Daily Fibonacci 61.8% 0.6731
Daily Pivot Point S1 0.6702
Daily Pivot Point S2 0.6684
Daily Pivot Point S3 0.6662
Daily Pivot Point R1 0.6742
Daily Pivot Point R2 0.6764
Daily Pivot Point R3 0.6782

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