AUDUSD is rising on the back of Australian retail

The AUDUSD is clinging to minor gains inside the weekly bullish channel, with a bounce off the 200-EMA.

The AUDUSD is still moderately bid after a three-day gain streak, hovering around 0.6665 heading into Wednesday’s European session.

The Reserve Bank of Australia unexpectedly raises its Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% on Tuesday. The market expected RBA Governor Philip Lowe to maintain his neutral stance. Despite the fact that inflationary pressures had been regularly dropping for the past three months.

However, the RBA believes that current monetary policy is insufficiently restrictive to achieve the price stability agenda.

Investors will now turn their attention to the Australian Trade Balance (March) data, which will be released on Thursday. Monthly Trade Balance data is down 12,750M from the previous release of 13,870M. A weaker-than-expected Trade Balance data would have an impact on the Australian Dollar.

As a result, the Australian dollar remains within an ascending trend channel while defending the previous day’s rebound from the 200-hour Exponential Moving Average (200-EMA).

Nonetheless, the easing bearish bias of the MACD signals, as well as the pair’s sustained trading within a bullish chart formation, as well as the clear bounce off the 200-EMA, keep AUDUSD buyer’s hopeful.

The late April swing high at 0.6705, however, confronts the Aussie pair’s immediate upside, a break of which will show a downward-sloping resistance line from April 13, close to 0.6715 at the latest.

If AUDUSD buyers maintain control over 0.6715, the top line of the specified weekly channel, The April 25 swing high at 0.6775, as well as the near 0.6745 by press time, could pose a challenge to the upside momentum.

A downside breaks of the stated bullish channel’s support line near 0.6660, on the other hand, isn’t an open invitation for the Aussie bear’s welcome, as the 200-EMA level of 0.6650 can prod the AUDUSD pair’s additional drops.

Following that, a drop to the yearly low reached in April, near 0.6565, cannot be ruled out.

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