Market News & Analysis

Top Story

AUD/USD Buoyed by Upbeat Trade Data

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.

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.