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AUD/USD faces rejection near 0.7050 and retreats

FXStreet (Mumbai) - A renewed bout of buying interest seen around the AUD/USD pair faded at 0.7050, and the prices turned lower, making the last the high of the day.

AUD/USD underpinned on risk-on

Currently, the AUD/USD pair rises 0.55% at 0.7025, retreating from fresh three-day highs posted at 0.7049 in early Asia. The bulls take a breather and consolidate the upside, after witnessing an almost 80-pips rally, after having bottomed near 5-DMA at 0.6980 in Asia opening.

The encouraging Chinese trade data combined with the optimistic tone on the Asian equities aided the recovery in the AUD/USD pair from NY lows of 0.6964. More so, the tepid-bounce in oil as well copper prices also lent support to the resource-linked Aussie.

China Dec trade data surprised markets to the upside, with the exports YoY rising +2.3% vs -4.1% expected and compared to -3.7% previous, while imports YoY saw -4% vs -7.9% expected and -5.6% last.

Meanwhile, markets continue to digest China trade data and await the European open for further cues on the Aussie pair ahead of Thursday’s Australian employment data.

AUD/USD Levels to watch


The pair heads higher and finds the immediate resistance at 0.7062/69 (10-DMA/ daily R2) above which gains could be extended to the next hurdle located at 0.7095 (1h 200-SMA). On the flip side, the immediate support located at 0.7000 (1h 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6980/78 (5-DMA/ daily low).

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