FxWirePro: AUD/USD holds gains above 0.74 handle, Aussie supported on positive Australia-China trade developments

AUD/USD chart - Trading View 

AUD/USD is holding gains above 0.74 handle, trades largely unchanged at 0.7409 at around 04:00 GMT.

The pair has edged higher from session lows at 0.7398 as the Australian dollar found bids on upbeat data and improving Australia-China trade relations. 

Data  released by the Australian Bureau of Statistics earlier on Thursday showed Trade Balance for October beats expectations (A$+5,800 mln) to print at A$+7,456 mln, s/adj.

Further, according to a Bloomberg report, China is considering allowing a shipment of Australian coal into the country, despite a ban on such imports. 

This was seen by traders as a welcome move amid recent escalation in the Australian-Sino trade tensions. 

Recent sell-off in the dollar amid rising expectations for additional fiscal stimulus, and hopes for swift global economic recovery on potential coronavirus vaccines, could continue to keep the pair supported.

AUD/USD trades with a strong bullish bias and momentum could carry the pair to 78.6% Fib retracement at 0.7573. 

Immediate support is seen at 5-DMA at 0.7381. Retrace below daily cloud will see major weakness. Bullish invalidation only below 200W MA.