- AUD/USD extends gains above 5-DMA, hits fresh weekly highs at 0.7842, bias higher.
- Aussie extends gains despite weak China trade data, big beat on imports figures supports.
- China's trade balance for Sept, in Yuan terms, came in at CNY+193.00 bn vs +266.05 bn expected and +286.50 bn last.
- Exports came at 9.0% y/y vs 10.9% expected, while imports rose 19.5% y/y vs 16.5% expected.
- Technical indicators have turned bullish, RSI is sharply higher, Stochs are on verge of rollover from oversold levels.
- MACD is on verge of bullish crossover on signal line, which if confirmed adds to bullish bias.
- 20-DMA at 0.7864 is next major resistance, break above could see test of 50-DMA at 0.7911.
- On the flipside, we see weakness on break below 200-DMA at 0.7677.
- U.S. CPI data will be in focus after FOMC members showed concerns that the recent weakness in inflation may not just be transitory.
Support levels - 0.7802 (1H 200-SMA), 0.7794 (5-DMA), 0.7733 (Oct 6 low), 0.77, 0.7677 (200-DMA)
Resistance levels - 0.7864 (20-DMA), 0.79, 0.7911 (50-DMA), 0.7930 (Weekly 200-SMA)
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 29.016(Neutral), while Hourly USD Spot Index was at -79.1687 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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