AUD/USD: Bulls Rescued by Upbeat Aus Dataflow, Nears 0.75

AUD/USD: Bulls Rescued by Upbeat Aus Dataflow, Nears 0.75

5 May 2016, 04:43
Roberto Jacobs
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AUD/USD: Bulls Rescued by Upbeat Aus Dataflow, Nears 0.75

The AUD/USD pair ran through fresh bid and jumped near about 40-pips in a knee-jerk upward spike after the Australian macro releases outpaced expectations.

AUD/USD eyes 0.7500

Currently, the AUD/USD pair advances 0.40% to 0.7488, having printed fresh session highs at 0.7491 post-data release. Stronger-than expected economic news from the OZ economy this Thursday offered the much-needed respite to the AUD bulls, lifting AUD/USD from near seven-week troughs.

Australia's March retail sales came at 0.4% m/m vs 0.3% expected and 0% last, while the trade balance printed -2,163M vs -2,900M expected and -3,410M last. A separated report showed newly-built home sales surged 8.9% m/m in March, rising at the fastest pace in six years.

However, further upside may seem restricted as the latest Chinese services PMI reading disappointed markets and hence, could weigh on AUD/USD. China is Australia’s the biggest trading partner. China April Caixin Service PMI came in at 51.8 (prior 52.2) & Composite stood 50.8 (prior 51.3).

After an eventful Asian session, we have a relatively quiet US docket, with the usual weekly jobless claims and building permits data on the cards. Besides, Fed official Bullard’s speech will be closely heard for fresh insights on the US interest rates outlook.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7500/15 (round number/ 1h 50-SMA) above which gains could be extended to the next hurdle located at 0.7567 (5-DMA). On the flip side, the immediate support located at 0.7447 (multi-week low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7413/00 (Mar 16 Low/ round number).


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