AUD/USD taps 0.7700 handle on mixed Chinese data

Following a brief pause on Wednesday, the AUD/USD pair resumed with its near-term bullish momentum and retested 0.7700 handle. 

Currently hovering just below 0.7700 mark, the pair benefitted from narrower-than-expected Australian trade deficit data that showed a 3% jump in exports m-o-m. Meanwhile, an unexpected rise in Chinese exports and lower-than-expected drop in exports negated disappointment from Chinese trade surplus (in USD terms) and extended support to the bid tone surrounding the major. 

Looking ahead, weekly jobless claims data from the US could provide fresh impetus for short-term traders, while the ECB monetary policy decision, which although not directly related, but could infuse a fresh bout of volatility in the FX market and drive the pair during European trading session. 

Technical levels to watch

A sustained move above 0.7700 handle now seems to open room for continuation of the pair's near-term upward trajectory and boost it immediately towards 0.7723 (August 18 high) before eventually rising to its next major resistance near 0.7750-55 region.

On the flip side, 0.7670 level now seems to act as immediate support below which the pair could drift back to 0.7650 support. A follow through selling below 0.7650 now seems to drag the pair back towards previous strong resistance, now turned important support, near 0.7615-10 region.