FX.co ★ 17.05.2021: China unveils important economic reports; outlook for USD, USD/JPY, AUD/USD

The Asian session began with news from China. Industrial output in the country fell slightly compared to last month.

This is a crucial indicator that will have an impact on the macroeconomic performance of some other countries, including the United States. Apart from this, retail sales in China decreased in April. At the same time, the unemployment rate has stabilized slightly. How will this data affect the market? Let's analyze it.

On Monday morning, the US dollar index is trading steadily. Last Friday, the index sank slightly due to negative news on US employment. Today, the greenback is likely to remain affected by the negative jobs data of last week. So, it is expected to continue its downward movement to the next target level of 90.100, although it is now trading at 90.420. However, its further trajectory will depend on fresh macroeconomic indicators and this week's news releases.

As for the dollar/yen pair, it has been trading sideways since Thursday without any sharp swings. At the same time, the weakness of the US dollar on Friday pushed the pair a bit lower. This is why the pair may fall to the nearest target level of 108.35. These are the lows of May and March 10. This scenario is likely to come true if the quote consolidates below Friday's low of 109.20. However, before reaching this target, the price may climb approximately to 109.400, which is quite possible judging by the current technical signals.

Last Friday, the Aussie gained 42 pips, trading at the target level of 0.7767. Yet, the situation has changed and the quote jumped to 0.7783, which was the top of January 21 of this year. Judging by its trajectory, the Aussie may well return under the zero line and enter the descending channel. Consolidation below this level will be a sign of a further decline to 0.7641, which is the high of December 17 last year.

We continue to monitor the situation and analyze the most important financial instruments for you. Don't miss the next video review!