Aussie Dollar Bounces Back amid China’s Trade Balance Report

The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Wednesday, increasing the price of AUDUSD to more than 0.7650 following some key economic releases. The technical bias shall remain bearish because of a lower low in the ongoing downside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7660. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7550 the psychological number and then 0.7467, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.8024, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.

Chinese Trade Balance Data

China reported a trade balance surplus of $26.62 billion for October, well narrower the $39.50 billion expected, while exports rose 6.9% and imports jumped 17.2%.

At the same time, January to October crude oil imports rose 11.8% year-on-year to 349 million metric tons, while October imports came in at 30.9 million metric tons.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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