AUD/USD supported above 0.7640 amid higher commodities

• USD weakness, higher commodities capping the downside in Aussie.
• A break above 0.7675 – key for further recovery, focus shifts to China trade data.

The AUD/USD pair continued to find solid support near the 0.7645 region and consolidated the Asian slide, triggered following the release of dismal Australian trade figures.

Australia's trade surplus shrinks more than expected in April

The bulls continue to guard the downside, as the commodity-currency, the Aussie, benefits from higher commodities’ prices, especially with oil and copper prices catching a fresh bid tone.

Moreover, ongoing sell-off in the US dollar across the board, mainly driven by aggressive EUR/USD buying, as the EUR bulls continue to ride higher on the European Central Bank (ECB) story. Speculations are rife that the ECB could announce fresh tapering plans of the current bond-buying programme next week.

More so, persisting risk-on market profile also collaborates to the stalled selling in the spot, as the focus shifts towards the US jobless claims due later today and Friday’s Chinese trade balance data for fresh trading opportunities.

AUD/USD Technical Levels

According to Karen Jones, Analyst at Commerzbank, “AUD/USD has met its initial corrective target but upside corrective strength remains and the market appears to be heading for a challenge of its 3-month downtrend at .7680. Between current levels and the 200-day ma at .7753, we look for failure and a slide back to the .7474 recent low. Below .7474 will target the .7413 recent low. Below here lies the May 2017 lows at .7373/.7330. Longer term we look for a move to the 2001-2018 uptrend line at .7156. Above the .7643/.7700 will target the .7813 April high.”