FxWirePro: AUD/NZD bounces off channel base support, retraces above 200-DMA, bias higher

AUD/NZD chart - Trading View 

AUD/NZD was trading 0.25% higher on the day at 1.0776 at around 11:55 GMT.

The pair has bounce off channel base support and has retraced above 200-DMA, raising scope for upside resumption.

RSI has turned north and is now above the 50 mark, supporting upside in the pair.

The aussie gains traction after RBA's quarterly Monetary Policy Statement and solid improvement in Chinese PMI and trade data.

In its latest quarterly Monetary Policy Statement the Reserve Bank of Australia (RBA) remained committed to maintaining a highly accommodative monetary policy until at least 2024. 

The central bank expected a pick -up in inflation and wage growth, and revised GDP higher to 4.34 in 2021 and 3.05 for the year 2022. 

On the data front, Australia Service PMI rose to 61.0 in April from 58.7. While China's PMI data improved to 56.3, trade surplus expanded to USD 42.85 billion in April, far above the market expectations of USD 28.1 billion.

Next major hurdle for bulls lies at daily cloud. Break out of cloud will fuel further gains. Scope for re-test of yearly highs at 1.0947.