AUD/JPY sees little action after mixed China data
China industrial production increased 7 percent year-on-year in March, bettering the estimate of 6.3 percent by a big margin. Meanwhile, consumption growth as represented by retail sales rose 9.4 percent as opposed to expected growth of 10.0%.
The data indicate the great Chinese rebalancing (from an investment-driven growth model to consumption-driven growth mode) may have hit a roadblock, as indicated by a sharp rise in industrial production and a slowdown in retail sales.
That said, an above-forecast industrial production is a good news for commodity dollar like the AUD. However, the AUD/JPY has not moved much after the China data release and was last seen trading around 82.63, representing marginal gains on the day. The pair may find bids if the risk assets pick up a strong bid during the day ahead.
AUD/JPY Technical Levels
The previous day's doji candle indicates the rally from the low of 81.13 has run out of steam. A close today above 82.79 would signal resumption of the rally, while acceptance below 82.40 (50-day moving average) would confirm a bear trend reversal.
Key resistance: 82.79 (doji candle high), 83.94 (April 19 high), 84.08 (April 23 high).
Key support: 82.40 (50-day MA), 82.18 (10-day MA), 82.00 (psychological level).