The Australian dollar took a short trip to the upside overnight but soon thought twice about it as the bears stormed in beneath the US$0.6955 resistance, which in turn, viewed prices retreat, sharply from the US$0.6933 peak.
Looking into the daily session, China will release its Q4 annualised Gross Domestic Product (GDP) which is forecasted at 6.0%; also we get the data release of December Industrial Production and Retail Sales, both are seen of a decrease when compared to the previous month.
As the market slowly digests the signing of the so-called “Phase-One” trade deal, it is likely the bearish technical sentiment will strengthen, after the overnight’s failed challenge.
With the resistance containing any advancement beyond US$0.6955, now expects the bears will gather in greater numbers.
A decisive break of US$0.6845 would see an extension to the bearish sentiment and expose the region of US$0.6770.