- Upbeat Chinese trade balance data assisted AUD/USD to regain traction on Thursday.
- A positive mood around equity markets, subdued USD demand remained supportive.
- Bulls might now await for some follow-through strength beyond 0.6475 or weekly tops.
The AUD/USD pair edged higher through the early European session and spiked to fresh session tops, around the 0.6460 region in the last hour.
Following the previous session’s intraday pullback, the aussie managed to regain some positive traction on Thursday and got an additional boost following the release of Chinese trade balance data.
The surprisingly stronger export data, showing a 3.5% jump in April, fueled optimism that the world’s second-largest economy could recover from the coronavirus-induced lockdowns quicker than anticipated.
This, in turn, boosted investors confidence, which was evident from a positive mood around the US equity future and turned out to be one of the key factors that benefitted the China-proxy aussie.
On the other hand, the US dollar struggled to capitalize on this week’s gains, rather was seen consolidating and remained supportive of the AUD/USD pair’s move back closer to weekly tops.
Bulls are now looking to build on the momentum beyond 200-hour SMA and a subsequent strength beyond weekly tops, around the 0.6475 region, will set the stage for a further appreciating move.
Moving ahead, market participants now look forward to the release of the US Initial Weekly Jobless Claim, which might influence the USD price dynamics and provide some short-term trading impetus.
Technical levels to watch