The AUDUSD is trading at its highest level since September 2 and is extending to new session highs. The catalyst today has been better China data (retail sales and industrial production), and a general risk-on sentiment. The RBA hinted at the potential for more stimulus in their meeting minutes. That was interpreted as bullish for the Australian economy and the AUD. Of course the technicals have also helped to give buyers more confidence.
Technically speaking, the pair today based near its 100 and 200 hour moving averages (blue and green lines) ahead of the China data. The run to the upside took the price back above its 50% retracement of the move down from the September 1 high at 0.73023 (and the natural 0.7300 level).
The next run to the upside initially stalled near a swing area between 0.7335 and 0.73397. That area held resistance until the recent run higher. Traders will be watching that level for close support after the break. A failure (and move back below the 61.8% retracement at 0.73283) might give traders cause for pause after the run higher today. The range for the day has reached 76 pips. The average trading range of the last month has been 69 pips.
US stocks are getting set to open in the next 10 minutes. The major indices are trading higher with the Dow industrial futures implying a gain of 210 points. The S&P futures are implying a gain of 28.25 points. The NASDAQ futures are implying a gain of 149 points.
Empire manufacturing came in much better-than-expected this morning. Industrial production was lower than expected but the prior month was revised higher negating some of the negative from the current month. There is no additional economic data scheduled for release today. The US treasury however will auction off 20 year notes at 1 PM.