The Australian dollar falls as China’s industrial and retail data disappoint. The pair turned south in the supply zone (0.7130) at the start of a sell-off back in June. A combination of profit-taking and new selling may keep the aussie under pressure in the short-term. A bearish RSI divergence indicates overextension and a break below 0.7060 could be seen as a confirmation, triggering a liquidation of leveraged positions. 0.6960 at the base of the recent rebound is a key support while 0.7060 has turned into a fresh resistance.
