AUD/USD Analysis: holding on to modest gains ahead of Chinese data
|AUD/USD Current Price: 0.6975
- China to publish June Trade Balance figures, relevant amid the ongoing global trade war.
- Australian Consumer Inflation Expectations in July at 3.2%, slightly below the previous 3.3%.
- AUD/USD retreated after nearing 0.7000, bulls could take over only beyond 0.7010.
The AUD/USD pair is trading at around 0.6970, barely 10 pips above its Thursday’s close, having been unable to regain the 0.7000 figure, as an approach to the level faded, despite the strong momentum in worldwide equities persisted. Australian data released at the beginning of the day were mixed, as Consumer Inflation Expectations in July came in at 3.2%, slightly below the previous 3.3%. Home loans remained flat in May against a 0.6% decline expected, while Investment Lending for Homes in the same month fell by 1.7%.
The upcoming Asian session will bring Chinese trade data for June, with both exports and imports are seen sharply up yearly basis. In dollar terms, the market foresees a surplus of $44.65B. Attention will be on the Chinese trade surplus with the US, as it could be a sign of more trade tensions coming between the two economies.
AUD/USD short-term technical outlook
The AUD/USD pair is holding above all of its moving averages in the 4 hours chart, while, despite easing, technical indicators remain above their mid-lines, indicating a limited downward potential at the time being. Nevertheless, the pair would need to surpass the 0.7010 region to actually become bullish short-term, with scope then to retest early July high at 0.7047. Bears, on the other hand, could take over the pair if it loses the 0.6950 support.
Support levels: 0.6950 0.6915 0.6880
Resistance levels: 0.6970 0.7010 0.7050
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.