AUD/USD chart - Trading View
- AUD/USD slumped overnight on strong US dollar after upbeat U.S. PPI and jobs data.
- The pair is currently trading in a narrow range, holding above 55-EMA support.
- Focus now on China Trade Balance data for further direction.
- Cautious tone of the Reserve Bank of Australia (RBA) during its bi-annual financial stability review keeps upside limited.
- The RBA downgraded growth forecasts and cited risks to trading partners/global financial system.
- Apart from Chinese data, US Michigan consumer sentiment index will also influence price movements.
- Break below 55-EMA (0.7117) will find next strong support at 0.7090 (trendline). Break below will see drag till cloud base.
- 200-DMA is major resistance on the upside. Bearish invalidation only on decisive break above.
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