FxWirePro: AUD/USD extends weakness below 0.72 handle amid mixed China Trade Balance data

AUD/USD chart - Trading View 

AUD/USD was trading below 0.72 handle after mixed China Trade Balance data failed to impress Aussie bulls.

Data released earlier today showed China's Trade Balance in USD terms narrowed to +37B versus for September, missing forecasts at +59.98B and below +58.9B in the previous month.

Imports showed a big jump which is a positive news for the Chinese economy, but data failed to impress the antipodeans.

Exports (YoY) stood at +9.9% vs. +10.0% expected and +9.5% last. While Imports (YoY) were at +13.2% vs. +0.2% expected and -2.1% last.

AUD/USD was extending weakness for the 2nd straight session, upside being caped at stiff resistance at 200W MA at 0.7242.

Technical studies show upside potential for the pair. We are seeing some weakness on account of a 'Bearish Divergence' on the daily charts.

Downside finds strong support at daily cloud, we see further weakness only on break below.

On the flipside, decisive breakout above 200W MA will fuel further gains in the pair. Next major bull target lies at 78.6% Fib at 0.7573.

Support levels - 0.7152 (55-EMA), 0.7123 (Cloud base), 0.71

Resistance levels - 0.7242 (200W MA), 0.7327 (Upper BB), 0.7573 (78.6% Fib)