AUD/USD Price Analysis: Bulls attack 0.6710 resistance as upbeat Australia trade data joins dovish Fed
- AUD/USD stays firmer for third consecutive day while piercing 21-DMA.
- Australia trade numbers for March came in firmer, Fed signals halt to rate hike trajectory.
- Looming bull cross on MACD, steady RSI (14) suggests further grinding towards the north.
- Descending resistance line from mid-February restricts immediate upside, Aussie bears remain cautious beyond 0.6565.
AUD/USD picks up bids to prod intraday high surrounding 0.6695 heading into Thursday’s European session as bulls cheer strong Australia’s trade numbers and the Federal Reserve’s (Fed) dovish rate hike. In doing so, the Aussie pair ignores downbeat China data, fears surrounding the US banking sector fallout and debt ceiling expiry.
Australia’s headline Trade Balance rose to 15,269M in April versus 12,650M market forecast and 13,870 prior. Further, Exports and Imports also improved to 4.0% and 2.0% versus -3.0% and -9.0% respective priors.
On the other hand, China’s Caixin Manufacturing PMI for April drops to 49.5 versus 50.3 expected and 50.0 prior. Earlier in the week, the NBS Manufacturing PMI for the dragon nation offered a negative surprise before the Chinese markets went on a long holiday until Thursday.
With more positives than negatives, the AUD/USD pair manages to cross the 21-DMA hurdle, now immediate support around 0.6675. The upside momentum also takes clues from the impending bull cross on the MACD and firmer RSI (14) line, near 50 level.
However, the quote needs to provide a daily closing beyond a downward-sloping resistance line from February 14, near 0.6710, to regain the market’s confidence in marking another battle with the 100-DMA hurdle of around 0.6790.
On the flip side, a surprise pullback of the AUD/USD price can aim for 0.6630 before poking the 0.6600 round figure.
Following that, a horizontal area comprising multiple levels marked since November 2022, around 0.6565-75, will be crucial for the bears to conquer to keep the reins.
AUD/USD: Daily chart
Trend: Further upside expected