AUD/USD remains capped below 0.7300 on Aus trade data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair keeps its corrective slide intact and fades a knee-jerk spike to 0.7296 levels following the release of above estimates Australian trade balance figures.

    AUD/USD hovers near 2016 highs

    Currently, the AUD/USD pair drops -0.10% to 0.7288, failing several attempts to break above 0.73 handle. The Aussie met fresh supply once again near 0.7295 region and reverted to the familiar range, as the correction from 2016 highs overshadowed the optimism from upbeat Australian trade data release.

    However, the losses remain restricted as the bulls continue to find support from the extension of the previous risk-on rally seen in the Asian equities. Japan’s Nikkei is up 0.88%, while the Australian ASX 200 advances 0.85%.

    Meanwhile, markets will continue to digest the latest economic data from the OZ economy as the focus now remains on the Chinese services PMI due later this session.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7332/38 (Dec 31 High/ daily R1) above which gains could be extended to the next hurdle located at 0.7388/0.7400 (Dec 4 High/ round number). On the flip side, the immediate support located at 0.7254 (1h 20-SMA/ 200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7203/04 (10 & 5-DMA).
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