FxWirePro: AUD/USD pauses downside at 55-EMA support, focus on China Trade Balance data

AUD/USD chart - Trading View 

• AUD/USD slumped overnight on strong US dollar after upbeat U.S. PPI and jobs data.
   
• The pair is currently trading in a narrow range, holding above 55-EMA support.
   
• Focus now on China Trade Balance data for further direction.
   
• Cautious tone of the Reserve Bank of Australia (RBA) during its bi-annual financial stability review keeps upside limited.
   
• The RBA downgraded growth forecasts and cited risks to trading partners/global financial system. 
   
• Apart from Chinese data, US Michigan consumer sentiment index will also influence price movements.
   
• Break below 55-EMA (0.7117) will find next strong support at 0.7090 (trendline). Break below will see drag till cloud base.
   
• 200-DMA is major resistance on the upside. Bearish invalidation only on decisive break above.

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