FxWirePro: AUD/USD extends gradual grind higher, Aussie unfazed by below-forecast Australia trade surplus

AUD/USD chart - Trading View 

AUD/USD is extending gradual grind higher, trades 0.11% higher at 0.6922 at around 04:35 GMT.

Aussie largely ignored a below-forecast Australia trade surplus, continues to trade in the green as the decline was expected due to the coronavirus lockdown restrictions.

Data released earlier today showed Australia's trade surplus narrowed to AUD 8,025 million from AUD 8,800 million. The surplus was forecasted to rise to AUD 9,000 million. 

Exports slipped by 4% in May, having declined by 11.3% in the preceding months. Meanwhile, imports suffered a 6% decline following April's 9.8% drop. 

The bid tone around the Aussie dollar may weaken if the equity markets turn risk-averse in response to the rising number of coronavirus cases in the US. 

Focus also on the key U.S. Nonfarm Payrolls report for impetus and clear directional bias. Above-forecast data may cause a temporary rise in the US dollar. 

Pullbacks on poor data could be short-lived, as the Federal Reserve vows to running an ultra-accommodative policy to support the economy. 

Technical bias for the pair is bullish. Strong resistance is seen at 110W EMA at 0.6932. Break above will see upside continuation. Little resistance then till upper weekly Bollinger band at 0.7111.

On the flipside, 21-EMA is strong support at 0.6859. Minor weakness on break below. Major weakness only on breach below 200-DMA.

Major Support - 0.6859 (21-EMA)

Major Resistance - 0.6932 (110W EMA)