AUD/USD extends the break beyond 5-DMA on solid China trade

The AUD/USD pair extended its break higher from the overnight consolidation phase, and is now seen flirting with the midpoint of 0.76 handle, after the bulls accelerated control on better-than expected Chinese trade data release.

The Chinese trade data (CNY terms) revealed that the trade surplus arrived at 354.5bln vs 307.25bln expected and 275.40bln last. While both the imports and exports came in much stronger-than expected, providing a positive input for the Aussie. China is Australia’s biggest trading partner.

Moreover, a minor retreat in the US dollar versus its main competitors also added to the renewed upside bias in the major. The USD index dropped from 9-day highs of 100.70 to now trade around 1100.60 levels.

Looking ahead, the Aus traders will continue to cheer the bullish China data ahead of the US dataflow due later in the NA session. While Trump reflation trades could limit further upside in the AUD/USD pair.

AUD/USD Levels to watch   

At 0.7656, the pair finds the immediate resistance at 0.7667 (previous high) above which gains could be extended to the next hurdle located 0.7699 (multi-week high) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7601 (20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7526 (200-DMA) and below that 0.7500 (zero figure).