The Australian dollar was a top winner of the Asian session on Tuesday, as bulls extend into seventh straight day and hit new one month high at 0.6432.
The Aussie was lifted by fresh risk appetite, sparked by better than expected China’s trade data (exports and imports results for March were well above forecasts while trade surplus widened) signaling that Chinese economy is restarting after being slowed by COVID19 pandemic.
Solid Chinese data offset very negative Australian NAB business confidence which fell to -66 in March from -4 previous month.
Weaker US dollar and firm stocks also contributed to Aussie’s advance. Fresh bulls cracked important barrier at 0.6407 (Fibo 76.4% of 0.6684/0.5509/55DMA) and turn focus towards the base of falling daily cloud (0.6517).
Strong bullish momentum on daily chart supports scenario, however, overbought stochastic warns that bulls may take a breather before resuming. Expect dips to offer better opportunities to re-enter bullish market, with strong supports at 0.6235 (broken Fibo 61.8%) and 0.6207 (rising 10DMA) expected to contain extended downticks and maintain bullish bias.
Res: 0.6432, 0.6491, 0.6517, 0.6613
Sup: 0.6374, 0.6340, 0.6300, 0.6235
