AUD/USD continues to rest above 100-day SMA amid mixed signals
- Speculations of a halt in China’s stimulus weigh on Aussie while crude strength and greenback weakness support the pair around 100-day SMA.
- Traders seek fresh catalysts from Australia/China as they return from holidays.
AUD/USD trades near 0.7140 during initial Asian sessions on Tuesday. The Aussie pair remained mostly suppressed like other majors due to Easter holidays restricting the flow of news reports and offering less active markets. However, 100-day SMA has been strong support that’s been restricting the quote’s downside off-late.
While reports of likely further hardships to Iranian oil exports by the US was helping the commodity basket, in addition to the data-led weakness of the greenback, the Australian Dollar (AUD) remained on a back-foot as speculations of China peddling down some of its stimulus measures and to continue the pattern in the future negatively affected the Aussie.
China is Australia’s largest trading partner, which in turn make AUD more prone to news reports concerning the dragon nation.
Recently, Australian Financial Review reported that Australia’s Prime Minister Scott Morrison will pledge $1.00 billion small and medium enterprise (SME) growth fund today to create 250,000 new small businesses over the next five years. Though, traders gave little response to the news.
The US new home sales, housing price index and the Richmond Fed Manufacturing Index are the only data on the economic calendar to observe. Forecasts suggest that the US housing market indicators are likely to remain weak whereas no major welcome outcome is expected from the manufacturing index.
With most of the global traders to be back on their desks, Tuesday is likely to be an active day for markets. However, the lack of new catalysts from Australia and China might confine the Aussie moves.
AUD/USD Technical Analysis
100-day simple moving average (SMA) level of 0.7135 acts as immediate important support, a break of which can drag the quote to 50-day SMA level of 0.7110 and then to seven-week-old ascending trend-line near 0.7095.
Meanwhile, 0.7170 and 200-day SMA level of 0.7190 may limit near-term upside ahead of highlighting 0.7210 and 0.7235 for buyers.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
