FxWirePro: AUD/USD holds marginal gains, Aussie budget and inflation data awaited for impetus

Chart - Courtesy Trading View 

AUD/USD was trading 0.33% higher on the day at 0.6332 at around 06:25 GMT.

The pair stays mildly bid amid cautious mood ahead of the key data/events, major trend remains bearish.

Traders await the first budget from Australia's Labour government. Strong commodity prices have cut estimates for the FY2023 deficit in half to A$36.9 billion, positive for the AUD.

Risk appetite remains depressed on China's struggling economy and global pessimism over Xi Jinping's third term.

Focus remains on the Aussie budget and Wednesday’s inflation data along with Thursday’s US Q3 Gross Domestic Product for impetus.

Technical Analysis:

- Price action is below major moving averages which are trending lower

- Recovery attempts capped at 21-EMA

- GMMA indicator shows major trend is bearish

- Momentum is bearish, RSI is below 50

Major Support Levels: 0.6312 (5-DMA), 0.6167 (Lower BB)

Major Resistance Levels: 0.6359 (20-DMA), 0.6385 (21-EMA)

Summary: AUD/USD recovery lacks traction. Bias remains bearish. Decisive break above 21-EMA could change near-term dynamics.