FxWirePro: AUD/USD inches closer towards daily cloud, upbeat Australian trade data and US dollar weakness support

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.11% higher on the day at 0.7372 at around 05:45 GMT

Previous Week's High/ Low: 0.7316/ 0.7118

Previous Session's High/ Low: 0.7383/ 0.7308

Fundamental Overview:

Aussie Trade Balance rose past market consensus, but souring risk appetite amid virus woes keeps upside limited.

China’s run of disappointing data also doesn't bode well for the antipodeans.

Australia trade balance prints at 12117M, crosses 10200M market consensus and 10496M previous readout.

Details of the report showed Imports and Exports also improved from 1.0% and 4.0% respective priors to 3.3% and 4.8%. 

Furthermore, Investment Lending for Home crossed 0.7% level of June with 1.8% figures for July.

DXY trades weak after poor ADP data on Wednesday, adding upside support to the pair.

Technical Analysis:

- AUD/USD extends break above 21-EMA, inches closer towards daily cloud

- Momentum studies are bullish, Stochs and RSI are sharply higher

- MACD supports gains, Chikou span is biased higher, bullish 5-DMA crossover on 20-DMA adds to the upside bias

- GMMA shows near-term trend on the daily charts has turned bullish

Major Support and Resistance Levels:

Support - 0.7332 (5-DMA), Resistance - 0.7394 (55-EMA)

Summary: AUD/USD bullish momentum to drive further gains. Caution ahead of the crucial US NFP data is likely to keep upside limited. 

Immediate resistance is seen at 55-EMA at 0.7394. Break above finds major resistance at daily cloud at 0.7409.