Australian Dollar Climbs Amid Positive China Data

(RTTNews) - The Australian dollar advanced against its most major opponents in the Asian session on Wednesday, following the release of strong China data for May.

Data from the National Bureau of Statistics showed that China industrial production logged a mild recovery in May and retail sales fell less than expected with the gradual relaxation of pandemic-related restrictions.

Industrial production rose 0.7 percent on a yearly basis in May, reversing the 2.9 percent fall in April. Production was forecast to drop 0.7 percent.

The annual fall in retail sales slowed to 6.7 percent from 11.1 percent in April. Economists had forecast a 7.1 percent decrease for May.

During January to May, fixed asset investment gained 6.2 percent from the previous year, topping expectations of 6 percent increase.

All eyes are on the Fed decision, with economists expecting another 50 basis point hike for the second consecutive meeting.

The Fed will release economic and interest rate forecasts on Wednesday that will provide more clues on future rate hikes.

The aussie edged up to 0.6918 against the greenback and 1.1097 against the kiwi, off its early lows of 0.6866 and 1.1048, respectively. The next likely resistance for the aussie is seen around 0.72 against the greenback and 1.12 against the kiwi.

The aussie rose to 0.8954 against the loonie and 93.55 against the yen, up from its prior lows of 0.8893 and 92.94, respectively. If the aussie rises further, 0.92 and 96.00 are likely seen as its next resistance levels against the loonie and the yen, respectively.

The aussie, however, retreated to 1.5178 against the euro, after rising to 1.5095 earlier in the session. The aussie is seen finding support around the 1.53 mark.

Looking ahead, Eurozone trade data and industrial production for April will be out in the European session.

Canada housing starts for May are scheduled for release at 8:15 am ET.

U.S. import and export prices and retail sales for May, business inventories for April and New York Fed's empire manufacturing survey and NAHB housing market index for June will be featured in the New York session.

At 2:00 pm ET, the Fed announces its decision on interest rate. Economists widely expect the Fed to raise rates by 50 basis points to 1.5 percent.