FxWirePro: AUD/USD holds gains despite weak Australia trade data, US dollar weakness supports

Chart - Courtesy Trading View 

AUD/USD was trading 0.68% higher on the day at 0.6530 at around 05:10 GMT. The pair is extending gains despite weak Australia trade data as broad based weakness in the US dollar is supporting the pair higher.

Data released by the Australian Bureau of Statistics on Thursday showed Australia’s trade surplus fell further from record highs in August.

The country’s trade balance was A$8.32 billion ($5.4 billion) in August, lower than expectations of A$10.10 billion, and also below last month’s reading of A$8.73 billion.

Details of the report showed Australian imports grew 4% in August from the prior month, overshadowing a 3% rise in exports.

Rising risk-on impulse has strengthened the commodity-linked currency while DXY has refreshed its day’s low.

Technical Analysis:

- AUD/USD is extending gains after 'Hammer' formation in the previous session

- MACD is on verge of bullish crossover on signal line

- Stochs and RSI are biased higher, momentum is turning bullish

- Price action has edged above 200H MA, GMMA indicator has turned bullish on the intraday  charts

Major Support Levels: 0.6485 (5-DMA), 0.6474 (200H MA)

Major Resistance Levels: 0.6596 (21-EMA), 0.6608 (20-DMA)

Summary: AUD/USD poised for further upside, scope for test of 21-EMA at 0.6596.