The AUDUSD bulls are struggling to retain the reins as China trade data. Along with a dismal Australia’s first quarter (Q1) GDP, propel the bullish momentum to the greatest levels in three weeks. However, the Aussie pair is retreating towards the intraday low of 0.6670. As the European session begins on Wednesday.
Moreover China’s front page The trade balance fell to $65.81 billion from $92.0 billion projected. And $90.21 billion in prior assessments. Nonetheless, exports and imports were mixed. with the former slipping above -0.4% predicted and 8.5% prior readings to -7.5% year on year, and the latter rises to 2.3% from -0.8% market estimates and 4.2% prior readings.
In contrast, Australian Q1 GDP increased 0.2% year on year, compared to 0.5% prior estimates and 0.3% market predictions. In the same vein, annual GDP came in at 2.3%, compared to experts’ expectations of 2.4% YoY and 2.7% prior estimates.
AUDUSD Technical Outlook
On the four-hour chart, the Aussie pair is displaying a rising wedge bearish chart pattern. While lately reversing from the 61.8% Fibonacci retracement of its May 10-31 drop. commonly known as the golden Fibonacci ratio.
However, the risk-barometer pair’s reversal from the important Fibonacci ratio validates. the use of the overbought RSI (14) line to entice selling. However, for the AUDUSD bears to seize control. a decisive downward breach of the indicated wedge’s bottom line, close to 0.6650 at the latest, is required.
Despite this, a confluence of the 200-SMA and the 50%. Fibonacci retracement level of about 0.6640-35 looks to be a difficult nut to crack for AUDUSD sellers.
On the other hand, a successful break of the 61.8% Fibonacci retracement level of 0.6680 requires confirmation from the mentioned wedge’s top line. which is near to the 0.6700 round number, to entice AUDUSD buyers.
The mid-May swing high at 0.6710 also acts as an upward filter.
