- Aussie keeps a hold of post-GDP gains, heads into Trade Balance on a positive note.
- Risk appetite remains healthy for now, but reversal on trade tensions could happen at any time.
The AUD/USD is trading into 0.7670 in early Asia trading after a bump up the charts on the back of better-than-expected GDP growth for the first quarter early Wednesday, and the pair has managed to keep itself aloft ahead of Thursday’s trade balance data.
Early Wednesday brings Australian Trade Balance figures at 01:30 GMT, expected to print at a flat 1 billion in AUD terms, compared to the previous reading of 1.527 billion. The Aussie has received a boost lately on the back of cautiously optimistic economic figures, despite the Reserve Bank of Australia’s (RBA) recent interest rate statement that saw the central bank take a slightly dovish turn to their rate outlook.
Little of impact was delivered in the last US session, and the AUD was left free to follow Wall Street higher up as market sentiment remains on-balance for the week.
AUD/USD levels to watch
As noted by FXStreet’s own Valeria Bednarik, “the AUD/USD pair broke above the 61.8% retracement of its latest decline ay 0.7660, holding nearby and biased higher, as the pair is developing above all of its moving averages in the 4 hours chart, with the 20 SMA heading sharply higher above the larger ones. The Momentum indicator in the mentioned chart has eased toward its mid-line, as the pair failed to break above its daily high, but the RSI indicator holds near overbought readings, which alongside with moving averages support additional gains ahead.”
Support levels: 0.7660 0.7620 0.7590
Resistance levels: 0.7660 0.7700 0.7740
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