FxWirePro: AUD/USD extends sideways grind below 21-EMA, mixed Aussie trade numbers fail to impress
AUD/USD chart - Trading View
AUD/USD was trading 0.23% higher on the day at 0.7394 at around 05:30 GMT, bias remains neutral.
The pair is extending sideways grind below 21-EMA resistance, decisive break above required for upside continuation.
Price action has halted a 5-week bearish streak and was holding 0.70% gains for the week till date.
Bounce in the pair remains lackluster. Covid concerns and falling iron-ore prices keep downside pressure.
Iron ore futures fall below a key 1,000 yuan mark on Thursday as Chinese domestic consumption remains sluggish on steel production controls.
On the data front, Australia Trade Balance for June printed at 10496M versus 10450M expected and 9681M previous.
However, softer-than-prior Exports and Imports, respectively near 4.0% and 1.0% versus 6.0% and 3.0% in that order, challenge the bulls.
In addition, firmer U.S. dollar after hawkish Fed comments on Wednesday, add to the downside pressure.
Cautious sentiment ahead of the key US Nonfarm Payrolls (due Friday) also restricts the market moves.
Major trend is the pair is bearish. Death Cross on the daily charts limits any upside in the pair. 21-EMA is immediate resistance at 0.7406, decisive break above will change near-term dynamics.