• Australian Dollar enjoyed a decent run against the US Dollar this week, as it posted good gains.
• There is an ascending channel pattern formed on the 4-hours chart of AUD/USD, which is providing support to the pair.
• The Chinese Gross Domestic Product (GDP) released by the National Bureau of Statistics of China posted an increase of 6.7% in Q2 2016, more than the forecast of 6.6%.
Earlier during the Asian session today, the Chinese Gross Domestic Product (GDP), which studies the gross value of all goods and services produced by China was released by the National Bureau of Statistics of China.
The forecast was slated for a growth rate of 6.6% in Q2 2016, compared with the same quarter a year ago. However, the result was above the forecast, as the Chinese GDP posted a growth rate of 6.7%.
When we look at the quarterly change, then the Chinese Gross Domestic Product came in at 1.8%, more than the forecast of 1.7%. There was another report, which posted an impressive figure, which is the Chinese Industrial output.
As per the report published by the National Bureau of Statistics of China, the Chinese Industrial output increased 6.2% in June 2016, compared with June 2015 and was a lot higher if we look at the market forecast of 5.9%. The results boosted the risk sentiment, and helped the Aussie dollar gaining traction against the US Dollar.
AUD/USD Pair Analysis
The AUD/USD pair after trading as low as 0.7300 found support and started gaining bids. There was a slow and steady uptrend, which took the pair above the 100 and 200 simple moving averages on the 4-hours chart.
The best part is an ascending channel pattern formed on the 4-hours chart, which is acting as a support in taking AUD/USD higher. There is a high probability that the pair may continue to move higher and test the 1.236 extension of the last drop from the 0.7646 high to 0.7301 low.
In short, the Aussie dollar has an upper hand against the US Dollar and may continue to trade higher in the near term.