FxWirePro: AUD/USD ignores upbeat China trade surplus data, markets remain cautious ahead of key US inflation, FOMC minutes

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.12% lower on the day at 0.7338 at around 04:30 GMT

Previous Week's High/ Low: 0.7338/ 0.7226

Previous Session's High/ Low: 0.7384/ 0.7332

Fundamental Overview:

China posted a trade surplus of $66.76 billion in September, beating forecast for a $46.8 billion surplus by a large margin. Trade surplus stood at $58.34 billion in August.

Details of the report showed exports rose 28.1% from a year earlier, while imports increased 17.6%, lagging an expected 20% gain forecasted.

The market sentiment is tepid amid stagflation worries. Investors turn cautious ahead of the key US inflation, Fed minutes and earnings reports. 

Markets largely convinced that the Fed will begin rolling back its massive pandemic-era stimulus as soon as November. 

FOMC minutes and CPI data are likely to influence near-term USD price dynamics and provide a fresh directional impetus to the AUD/USD pair.

Technical Analysis:

- AUD/USD on track to close in the green for the 3rd straight week

- Price action is extending bounce off 200-week MA support

- The major is currently struggling to break out of 'Symmetric Triangle' pattern

- Momentum is bullish and volatility is high, scope for further upside

Major Support and Resistance Levels:

Support - 0.7332 (55-EMA), Resistance - 0.7405 (110-EMA)

Summary: AUD/USD capped at 'Symmetric Triangle' top for the 3rd straight session. Decisive break above will fuel further upside.