AUD/USD analysis: pressuring a strong static support, 0.7200 next

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7254

Australian dollar lost ground after Wall Street turned red.
Australian housing data and Chinese inflation to set the tone in the Asian session.

The AUD/USD pair spent the day around 0.7280, helped by mostly firmer equities worldwide during the first half of the day. There were no macroeconomic news coming from Australia but China released its October trade balance data. In dollar terms, the surplus was of $34.01B, slightly below the expected, while imports soared 21.4% from a year earlier, and exports increased by 15.6%, both above expected. The figures also showed that exports to the US increased 8.7%, while imports from the country were up 3.7%. Yearly basis, the Chinese surplus with the US increased by 11.5%, proving Trump's trade-war is far from solving the trade imbalance. Early Friday, Australia will release some housing data, while China will unveil October inflation, foreseen at 2.5% YoY.

Post-Fed and with Wall Street turning red, the pair lost some ground now heading into the Asian opening around the key 0.7250 level, a strong static support, and more relevant, also above 0.7200, the 61.8% retracement of the September/October slide. Technical readings in the 4 hours chart show an increased bearish potential as the pair is defying a bullish 20 SMA, while the 100 and 200 SMA are around the 38.2% retracement of the mentioned decline in the 0.7140 region. Technical indicators have turned south within positive ground, now nearing their midlines, leaning the risk toward the downside.

Support levels: 0.7250 0.7200 0.7165

Resistance levels: 0.7315 0.7340 0.7375

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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