The antipodeans are the slight laggards as we get into European trading today, with AUD/USD down 0.4% to 0.6810 currently. This comes after the China Q2 GDP data earlier here. While there was a beat in the quarterly estimate, the focus seems to be on the yearly estimate – which disappointed heavily. In turn, that is also weighing on the Chinese yuan as well as domestic stocks today.
AUD/USD daily chart
In the case of AUD/USD, the pair is also weighed down after a run up against its June highs near 0.6900 at the end of last week. That is helping to extend the downside rejection today, though buyers are still in a good spot with the 100-hour moving average only seen at 0.6790. A break below that will only start to see the near-term bias switch around for AUD/USD.
Otherwise, for now, there is a bit of a stall in the upside rebound from 0.6600 earlier this month. This comes as the dollar selling also hits a bit of a pause since Friday. As much as the China data earlier is impactful for the aussie, the key driver remains dollar sentiment at the moment.