AUD/USD fades upbeat Chinese GDP-led spike to fresh 2-month peak

The AUD/USD pair faded upbeat Chinese GDP-led bullish spike and has now reversed majority of daily gains to fresh 9-week high.

Today's better-than-expected Chinese data Q4 growth number and retail sales data negated slightly disappointment readings from industrial production and fixed assets investment. This coupled with a mild retracement in the US treasury bond yields provided an additional boost to higher-yielding currencies - like the Aussie, and helped the pair to build on Thursday's strong rebound move from the very important 200-day SMA, lifting it to the highest level since Nov. 11.

The pair, however, lost its upside momentum as traders seemed to lock-in some profits ahead of the big event risk, Donald Trump's inaugural speech later during the day. The pair was last seen trading nearly unchanged from yesterday's closing, around 0.7560-65 band, but still seems all set to post fourth consecutive weekly gains. 

Technical levels to watch

A follow through retracement below session low support near 0.7550 level, the pair is likely to extend the corrective slide towards back towards 0.7500 psychological mark, en-route 0.7470-65 horizontal support.

On the flip side, bullish momentum back above 0.7580 level now seems to lift the pair towards 0.7600 handle above which the up-move is likely to accelerate towards 0.7650 horizontal resistance.