AUD/USD analysis: bearish, heading towards 0.7250

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7384

The Australian dollar was among the worst performers this Monday, ending the day below the 0.7400 mark against its American rival. Chinese trade balance for April printed a larger-than-expected surplus of $38.05 billion, higher than the $23.93 billion reported in March, and above market's expectations, but exports rose 8.0% in dollar terms, while imports rose 11.9%, both falling short of expectations. The Aussie fell on the news, despite the NAB business confidence surged to a six-year high in the same month, up to 13 from previous 6. The country will release its retail sales figures for March during the upcoming Asian session, expected to have advanced by 0.3% in March, although seems unlikely that an even stronger-than-expected reading could revert the sour tone of the AUD. Technically, the 4 hours chart shows that an early advance was contained by selling interest around a bearish 20 SMA, whilst the Momentum indicator advanced up to its 100 level, but so far failed to advance above it, and the RSI indicator holds flat around 34, maintaining the risk towards the downside.

Support levels: 0.7365 0.7330 0.7295

Resistance levels: 0.7410 0.7440 0.7490

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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