FX News – September 10: Positive China Data Boosts Euro & Aussie

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The EUR/USD continued its ascent in today's trading after China released a series of positive economic data. The country's Industrial Production went from 9.7% to 10.4%, which was better than the expected 9.9%, while Retail Sales went from 13.2% to 13.4% (it was expected remain at 13.2%), and Urban Investment rose from 20.1% to 20.3% (better than the expected 20.2%).


With this development, the EUR/USD pair rose above the 1.3250 level and is currently trading at 1.3271. This practically erased the pair's losses last week, after it dipped below 1.3110.


Initial resistance for the pair is at 1.3328, followed by 1.3362, while initial support is at 1.3209, followed by 1.3175.


Another beneficiary of the China data is the aussie, which rose in comparison to the greenback. The AUD/USD pair managed to break past the 0.9280 level in today's trading and even reached a high of 0.9289, levels not seen since July.


A compromise on the Syria issue also helped boost the pair, as well as the positive Australian Business Confidence, which reached a 2-year high, moving from the previous -3 to 6. Further positive data from China could mean more good news for the aussie.


The AUD/USD pair is currently trading at 0.9265 with initial resistance at 0.9276, followed by 0.9299, while initial support is at 0.9198, followed by 0.9175.


While the US Congress is yet to vote on the issue on Syria, risk of US military action has waned at the moment with the intervention of Russia. In the fx market, this resulted in a weaker yen, leading to a boost in the EUR/JPY pair. It has so far broken past the 132.50 zone in today's Asian session, and is currently trading at 132.52. Initial resistance for the EUR/JPY pair is seen at 132.74, followed by 133.07. Meanwhile, initial support is at 131.49, followed by 131.16.

By FX Strategy Team, Published on 10th of September 2013
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