Key Points
- The Aussie dollar managed to climb higher vs the US dollar, and currently looks set for more upsides.
- There is a critical support trend line formed on the hourly chart of the AUDUSD pair, which may be considered as a buy area.
- In Australia, the Home Loans released by the Australian Bureau of Statistics posted a rise of 1.7% in April 2016, less than the forecast.
- Chinese Trade Balance released by the General Administration of Customs of the People’s Republic of China posted a trade surplus of $49.9B in May 2016, less than the forecast.
Technical Analysis
The Aussie Dollar spiked higher this week against the US Dollar, and moved above the 0.7440 resistance area. There is a critical support trend line formed on the hourly chart of the AUDUSD pair, which acted as a catalyst for the upside move.
The 50 hourly simple moving average is aligned with the trend line support. So, if the pair dips from the current levels, then one may consider buying near it.
On the upside, a break above 0.7470 may call for a test of the 0.7500 handle in the near term.
Chinese Trade Balance
Today in China, the Trade Balance was released by the General Administration of Customs of the People’s Republic of China. The market was expecting the balance between exports and imports of total goods and services to post a surplus of $55.800B USD in May 2016. However, the outcome was a bit lower, as the trade surplus was $49.9B.
Moreover, In Australia, the Home Loans report was released by the Australian Bureau of Statistics. According to the report, the number of home loans increased 1.7% in April 2016, less than the forecast of 2.5%.
Overall, the market sentiment is positive for the Aussie Dollar bulls, and it may continue to help the AUDUSD pair in the near term.
