AUDUSD Bulls attack resistance as positive Australian trade data joins the Fed

The AUDUSD remains solid for the third consecutive day, piercing the 21-DMA.

As bulls praise good Australian trade statistics and the Federal Reserve’s (Fed) dovish rate rise. The AUDUSD picks up bids to reach intraday highs above 0.6695 heading into Thursday’s European session. In doing so, the Aussie ignores disappointing Chinese data, concerns about the US financial sector’s collapse, and the debt ceiling’s expiration.

Australia’s March trade figures were stronger, while the Fed signaled a stop to its rate rise trajectory.

Australia’s headline Trade Balance increased to 15,269 million in April, up from 12,650 million predicted by the market and 13,870 million the previous month. Furthermore, exports and imports increased to 4.0% and 2.0%, respectively, from -3.0% and -9.0% previously.

In contrast, China’s Caixin Manufacturing PMI for April fell to 49.5 from 50.3 predicted and 50.0 before. Earlier in the week, the dragon nation’s NBS Manufacturing PMI provided a negative surprise before the Chinese markets went on a tear. Long weekend until Thursday.

AUDUSD Technical Outlook

The AUDUSD pair manages to surpass the 21-DMA hurdle, presently finding immediate support around 0.6675, with more positives than negatives. The coming bull cross on the MACD and a stronger RSI (14) line near 50 level also contribute to the upward momentum.

However, the quote must provide a daily close above a downward-sloping resistance line from February 14, near 0.6710, to re-establish market confidence in tackling the 100-day moving average hurdle of around 0.6790.

A surprise drop in the AUDUSD market, on the other hand, can aim for 0.6630 before prodding the 0.6600 round number.

Following that, a horizontal area with multiple levels marked since November 2022, around 0.6565-75, will be critical for the bears to conquer in order to maintain their position.

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