AUD/USD Price Analysis: Bull flag, upbeat China data and pre-RBA positioning highlight 0.6750 for buyers
- AUD/USD extends recovery from intraday low within bullish chart formation.
- China Caixin PMI, Australia TD Securities Inflation came in firmer for May.
- Sustained trading beyond key moving averages, upbeat RSI hints at confirmation of bullish pattern.
- Bull flag signals theoretical target of 0.6750, sellers need validation from 200-SMA.
AUD/USD picks up bids to pare intraday losses around 0.6700 as it struggles to cheer upbeat catalysts at home amid early Monday in Europe. In doing so, the Aussie pair portrays the traders’ anxiety ahead of the key Reserve Bank of Australia (RBA) data.
That said, strong US Nonfarm Payrolls (NFP) teased Aussie pair sellers during the week-start trading before the firmer Australia-China data recall the buyers. Earlier in the day, China’s Caixin Services PMI matches 57.1 market forecasts for May versus 56.4 previous readings. Before that, Australia’s TD Securities Inflation rose 0.9% MoM in May versus 0.2%. However, the downbeat prints of the TD Securities Inflation on a YoY basis join a reduction in the nation’s Company Gross Operating Profits for the first quarter (Q1) to prod the bulls.
Apart from that, the top line of the short-term bull flag, around 0.67000 round figure by the press time, challenges the AUD/USD pair buyers.
However, the Aussie pair’s successful trading above the 200 and 100 SMAs, as well as a three-day-old rising support line, keeps the pair buyers hopeful of crossing the immediate 0.6700 hurdle, which in turn highlights a theoretical run-up towards the 0.6750 mark.
During the likely rise, highs marked on May 16 and 19, respectively near 0.6710 and 0.6675, can act as intermediate halts.
Meanwhile, 100-SMA joins the stated flag’s bottom line to highlight the 0.6580 level as the short-term key support.
Following that, the ascending support line from the last Wednesday, near 0.6570, followed by the 200-SMA level of near 0.6545, can act as the last defense of the AUD/USD bulls.
AUD/USD: 30-Minutes chart
Trend: Further upside expected