AUD/USD Review: Aussie balancing on the 0.74 barrier ahead of China Trade Balance
|- Aussie back on the rise as the USD recedes, giving risk assets some breathing room.
- Friday's China trade figures will be the key to finishing the week strong.
The AUD/USD is back into the 0.7400 key level heading into Friday's markets after slumping through the mid-week on the back of rising trade tensions between the US and China. The broad-market surge in the USD saw metals taking a header, driving the Aussie down to bottom out at 0.7360 on Thursday.
The Greenback has stepped back as China strikes an unexpectedly reconciliatory tone towards the US, urging the Trump administration to pursue bilateral trade talks, and a softer-than-expected reading of the US CPI further weakened the USD's base heading into Friday.
Friday sees China's Trade Balance figures, and traders will be paying close attention to China's Import and Export figures as the US-China trade war begins to ramp up.
AUD/USD Technical Analysis
The Aussie has recovered around 60% of the latest bearish drop, a key pullback level that may leave the AUD/USD exposed to further declines if bears step in, while bulls will be looking to defend the newly-reclaimed 0.7400 handle.
| Spot rate: | 0.7404 |
| Relative change: | Negligible |
| High: | 0.7407 |
| Low: | 0.7400 |
| Trend: | Bullish |
| Support 1: | 0.7400 (major technical level) |
| Support 2: | 0.7364 (June 28th swing high) |
| Support 3: | 0.7310 (current 2018 low) |
| Resistance 1: | 0.7442 (June 25th swing high) |
| Resistance 2: | 0.7494 (50-day SMA) |
| Resistance 3: | 0.7600 (major technical level) |
AUD/USD Chart, 15-Minute
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