AUD/USD trades choppy around 0.7575 in Asia

The AUD/USD pair is seen fluctuating between gains and losses so far this session, as the bulls are torn between broad based US dollar weakness and dismal Chinese data.

AUD/USD holds below 0.7600

Currently, the AUD/USD pair trades almost unchanged at 0.7576, having posted a day’s high at 0.7585 and day’s low at 0.7564. The Aussie extends its choppiness into mid-Asia, wavering in a 20-pips narrow range, as falling Chinese industrial profits dampen the sentiment around the Antipodean. China is Australia’s biggest trading partner.

China's industrial profits in December rose 2.3% y/y, easing sharply from November's growth rate of 14.5%. This reflects that the profits increased at a slowest pace in a year.

However, the downside remains cushioned amid subdued trading activity around the US dollar, while positive Asian equities fuel risk-on trades, which underpin the bids for the higher-yielding currency AUD.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7600 (round figure) above which gains could be extended to the next hurdle located 0.7631 (Nov 11 high) and 0.7650 (psychological levels). On the flip side, the immediate support located at 0.7555 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7514 (200-DMA) and below that 0.7478 (100-DMA).