Audusd Strong On China Data

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Audusd Strong On China Data

Aud/Usd Strong Above 0.6600 Post Chinese Data

AUD/USD remains strong above the 0.6600 handle on Thursday as the US Dollar is staging a pullback. At the same time, the Chinese data shows a strong trade surplus, along with remarks from the RBA governor.

The current situation is in favor of the AUD, which is the key reason behind the recent upside of the AUD/USD. Now, the markets are awaiting the Fed's verdict to plan their next move in AUD/USD.

Aud/Usd To Find Support At 0.6511

If the AUD/USD starts trending lower, it could go towards 0.6511 (low from 6th November). Beyond that is 0.6247 which is the bottom of year 2024.

On the way up, the first obstacle is around 0.6641, which is the highest since November. Immediately after that is the 100 SMA located at 0.6690. Similarly, the 50 SMA is also present at 0.6728 and will serve as strong dynamic resistance.

On Wednesday, a strong pullback was seen in the USD after the conclusion of the US elections. This led many pairs to retreat including the AUD/USD. This also forced the AUD/USD to give up its 200 SMA near the 0.6627, with the short-term outlook turning to bearish.

Another thing that is weighing down the AUD is the stimulus measures from China, which still remain shrouded in mystery. However, the iron prices remain steady, which supports the AUD.

Meanwhile, the Reserve Bank of Australia (RBA) has decided to keep the rates at 4.35% with no change. Also, the RBA adopted a more neutral stance going forward.

According to the RBA, inflation risks require the central bank to remain vigilant. The available forecasts show that inflation will likely reach the 2-3% range in 2026.

Going forward, any statements from Trump and his party could have some major impact on the USD and, thus, the AUD/USD pair.

If we look back, the last Trump victory led to a US Dollar rally, but will history repeat itself? Well, it looks like we will have to wait and find out.

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