Some really nice two way price action on the Aussie complex which started overnight on the release of Chinese data, namely GDP, the Industrial Production and the Fixed Asset Investment numbers. The hourly chart for the complex clearly shows volatility candles being triggered across the board (as denoted by the purple arrows), with the Aussie rising sharply before moving back inside the spread of the volatility candle. This momentum was also signaled on the currency strength indicator before the currency moved into a consolidation phase in the transition to the European and London sessions.

There were further gains for the Aussie in the morning session, until bullish momemtum drained away which resulted in some great trades to the short side. These were particularly evident in the AUD/USD, GBP/AUD and AUD/NZD.

The Aussie now faces another important item of fundamental news, specifically the RBA Monetary Policy Meeting Minutes which may give traders some indication of whether the central bank is likely to cut interest rates again in November. Opinion appears to be divided on this issue, and this uncertainty is reflected in the current sideways consolidation for the AUD/USD on the daily chart. The failure of the AUD/USD to take out the 0.7381 resistance line last week has seen the pair fall to a low of 0.7198 before managing to settle at support in the 0.7230 region. Any break through here could then see a move back down to support at 0.7198 where the 100 ma also await.