AUD/USD: Bulls Rescued by Upbeat China Imports, Regains 0.7450
The AUD/USD pair caught a fresh bid tone and trimmed losses to retest five-week highs, following the release of positive Chinese imports and exports data.
AUD/USD rises above 50-DMA at 0.7442
Currently, the AUD/USD pair trades modestly flat at fresh session highs of 0.7454, within a striking distance of fresh five-week highs reached yesterday at 0.7463. The Aussie halted its corrective slide at 0.7430 and regained upside momentum after the Chinese imports data revealed a smaller than expected drop in the imports, which shows that the Chinese domestic demand is slowly picking-up. China is Australia’s top export destination.
The Aussie hovers near multi-week highs as RBA’s status-quo stance combined with higher oil prices underpins the sentiment around the AUD. While ongoing weakness in the greenback across the board, further aids the bounce in the major.
Next in focus remains the US labour data due later in the NA session ahead of the Chinese CPI data lined up for release tomorrow.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7482/0.7500 (May 6 High// round number) above which gains could be extended to the next hurdle located at 0.7526 (daily R2). On the flip side, the immediate support located at 0.7402/0.7392 (100 & 5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7304 (10-DMA).