AUD/USD Buoyed by Upbeat Trade Data
Ming Lam May 7, 2020 11:03 PM
Boosted by such better-than-expected Australian and Chinese trade data, Australian dollar is charging higher...
Australia reported that Trade Surplus widened to A$10.60 billion in March (A$6.00 billion expected) from A$3.87 billion in the prior month. March Exports grew 15% on month, in contract to a reduction of 5% expected.
Meanwhile, Australia's key trading partner China said Exports grew 3.5% on year in April, better than a contraction of 11.0% expected.
Boosted by such better-than-expected trade data, Australian dollar, which is widely regarded by traders as a "proxy trade" for China' economy, is charging higher.
On an Intraday 30-minute Chart, AUD/USD continues its rebound from a low of 0.6378 seen on May 6 (Wednesday).
Source: GAIN Capital, ,TradingView
The ascending 20-period moving average, which stands above the 50-period one, is providing support along the way.
The relative strength index has climbed into Over-Bought Region (above 70) without showing a Bearish Divergence.
Propelled by continued upward momentum, AUD/USD is expected to encounter Overhead Resistance at 0.6570 (around the high of April 30).
Above this level, the next resistance at the key 0.6600 level would come into sight.
On the downside, the level of 0.6500 (around the 20-period moving average) is acting as a Key Support.
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