Aussie Dollar parked below resistance as traders wait for RBA Monetary Statement and China Industrial Production

CMC Markets

The lows of 24 and 25 July around .9130 form minor resistance on the daily chart and the market has stopped at that level. Aussie may be influenced by the RBA Statement on Monetary Policy at 11.30am. Key factors here will be their forecast for GDP and inflation as well as discussion on risks to these forecasts (especially indications they are most concerned about downside risk) China's Industrial Production (expected 8.9%) and Retail Sales (expected 13.5%) may be key numbers for the .9130 resistance today. Better than expected PMI and balance of trade figures in recent days have seen the market reassess the risks of falling growth in China. These 2 data points are not conclusive evidence that things have turned around. However, they both tend to be leading figures and further signs of improvement in today’s industrial production and retail sales numbers would be a relief for the market. A really good industrial production number might see the Aussie build on recent upward momentum. Next resistance above .9130 is .9320 peak

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