Chart - Courtesy Trading View
AUD/USD was trading 0.61% lower on the day at 0.6428 at around 04:40 GMT.
The pair has extended bearish gap open and is struggling to extend previous session's gains.
Weaker-than-expected China’s Trade Balance data seems to have weighed on the antipodeans.
China's Trade Balance for October came in at +85.15B versus +95.95B expected and +84.74B previous.
The exports fell by -0.3% vs. +4.3% expected and +5.7% prior. While Imports fell by -0.7% vs. +0.1% expected and +0.3% last.
Major trend in the pair is bearish, while minor trend is turning bullish. Price action is holding above 200H MA.
Focus now will be on US Consumer Price Index (CPI) data due Thursday, which will determine whether the Fed will increase the peak for terminal rates or will leave them unchanged.
Preliminary estimates suggest the headline CPI is seen lower at 8.0% vs. the prior release of 8.2%. While the core CPI that excludes oil and food prices is seen lower at 6.5% against 6.6% recorded earlier.
Major Support Levels:
S1: 0.6398 (21-EMA)
S2: 0.6347 (20-DMA)
Major Resistance Levels:
R1: 0.6191 (Upper BB)
R2: 0.6529 (55-EMA)
Summary: AUD/USD comatose above 21-EMA support. Scope for more upside as long as pair holds above 21-EMA. Next major resistance lies at 55-EMA at 0.6529. Break above will see change in near-tern dynamics.


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