AUD/USD struggles to gather upside traction despite upbeat China data

• AUD/USD is struggling to build bullish momentum despite the above-forecast China data. 
• Both retail sales and industrial production for November bettered estimates. 
• Fears of a deeper slowdown in China are likely capping gains in the AUD. 

AUD/USD is struggling to gather upside traction despite an above-forecast China data. 

The pair picked up a bid near 0.6775 after the consumer spending, as represented by retail sales, rose 8% year-on-year in November, beating the forecasted rise of 7.6% by a big margin, having increased by 7.2% in October. 

Industrial production rose 6.2% compared to an expected rise of 5%, marking an improvement from October's 4.7%. Further, the People's Bank of China has injected 300 billion Yuan into the system via a one-year medium-term lending facility. 

So far, however, the upside in AUD/USD has been capped around 0.6886. At press time, the pair is trading at 0.6880, representing no change on the day. 

The bullish pressure remains weak, possibly due to the news that China is planning to lower its 2020 gross domestic product target to 6% from the current year's 6.5%. 

Looking forward, the fears of a deeper slowdown in China in 2020 could continue to overshadow the phase one US-China trade deal and weigh over the AUD. 

Technical levels