AUD/USD Analysis: holding on to modest gains ahead of Chinese data

Valeria Bednarik FXStreet

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

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.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold loses momentum, eases below $5,000

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.