AUDUSD – Can Aussie Dollar Trade Towards 0.7600 Vs USD?
Aayush Jindal
Key Highlights
The Aussie dollar maintained a heavy bid tone against the US Dollar, and settled above 0.7400.
At the moment, the AUDUSD pair is facing a monster resistance area near 0.7520-40, which is a pivot area on the 4-hours chart.
Today, the Chinese Trade Balance released by the General Administration of Customs of the People’s Republic of China posted a trade surplus of 335.00B (CNY) in Dec 2016.
In the US, the Monthly Budget Statement released by the Financial Management Service came in at $-28B for De 2016, compared with the forecast of $-25B.
AUDUSD Technical Analysis
The Aussie dollar climbed higher this week and closed above 0.7400 against the US Dollar. The AUDUSD pair looks like in an uptrend, but can it trade towards 0.7600 in the near term?During the recent upside move, the pair settled above the 100 simple moving average on the 4-hours chart at 0.7350. There was also a close above the 50% Fib retracement level of the last decline from the 0.7524 high to 0.7160 low.So, there is a high chance of AUDUSD trading further higher. It is at the moment facing a monster resistance area near 0.7520-40. The stated levels acted as a pivot area and resistance earlier. So, if there is a close above it, there can be more gains.The next upside move could be towards the 1.236 extension of the last decline from the 0.7524 high to 0.7160 low, which is at 0.7610. A failure to close above 0.750 may call for a correction back towards 0.7450.
Chinese Trade Balance
Earlier during the Asian session, the Chinese Trade Balance figures were released by the General Administration of Customs of the People’s Republic of China. The market was expecting the balance between exports and imports of total goods and services to improve in Dec 2016, compared with the last surplus of $44.61B.However, the outcome was better, as the trade surplus was 335.00B in Dec 2016 (CNY), which was more than the last 298.11B.The Chinese imports increased by 0.6% in Dec 2016, compared with the last +13%. Exports declined by -2% in Dec 2016, compared with the last +5.9%. Overall, the result was stable with hardly any impact on the risk sentiment and pairs like AUDUSD and EURUSD.
During the recent upside move, the pair settled above the 100 simple moving average on the 4-hours chart at 0.7350. There was also a close above the 50% Fib retracement level of the last decline from the 0.7524 high to 0.7160 low.So, there is a high chance of AUDUSD trading further higher. It is at the moment facing a monster resistance area near 0.7520-40. The stated levels acted as a pivot area and resistance earlier. So, if there is a close above it, there can be more gains.The next upside move could be towards the 1.236 extension of the last decline from the 0.7524 high to 0.7160 low, which is at 0.7610. A failure to close above 0.750 may call for a correction back towards 0.7450.