AUD/USD pokes daily top below 0.7300 on mixed Aussie data, softer greenback

• AUD/USD picks up bid after recent data, struggles to extend post-Fed gains.
• Australia Trade Balance improved, Building Permits deteriorated in March.
• Market sentiment dwindles on China’s return, covid, geopolitics and Sino-American tension are the latest challenges.
• Second-tier US data may entertain traders ahead of US NFP, risk catalysts are the key for fresh impulse.

AUD/USD bulls struggles to return, even as the quote pokes intraday high around 0.7265 following the release of Australia’s trade and housing numbers during early Thursday.

Australia’s Trade Balance rose to 9314M versus past 8500M forecast and 7457M prior while Building Permits dropped below -12.5% MoM forecasts to -18.5%, versus 43.5% prior in March. Details suggest that the Imports shrank 5.0% versus 12.0% previous growth but the Exports remained unchanged at 0.0% during the stated period.

Read: Aussie Trade Balance beats expectations, supports AUD

Apart from the data, the US dollar pullback also seems to help the AUD/USD buyers of late. That said, the US Dollar Index (DXY) drops 0.05% to 102.45 as it prints weekly low during a three-day downtrend. The greenback gauge declined the most since in two months the previous day after the US Federal Reserve’s (Fed) 50 basis points (bps) rate hike and clues for the Quantitative Tightening (QT) failed to impress USD bulls. The reason could be linked to Fed Chair Jerome Powell’s rejection of a rate hike worth 75 basis points (bps) in upcoming meetings.

It’s worth observing, however, that China’s return to markets allow traders to rethink over the post-Fed optimism as the US Securities and Exchange Commission (SEC) added over 80 Chinese firms in the list of companies facing probable delisting from the US exchanges. On the same line were ongoing covid woes and the European Union’s (EU) sixth round of sanctions on Russia.

Amid these plays, the S& 500 Futures print mild losses despite Wall Street’s rally whereas Australia’s ASX 200 rise 0.66% to 7,352 by the press time.

Looking forward, US Jobless Claims, Nonfarm Productivity and Unit Labor Cost, as well as the Bank of England (BOE) monetary policy meeting, are the key events that could affect AUD/USD prices. However, major attention will be given to the qualitative factors mentioned above, as well as the pre-NFP anxiety.

Technical analysis

Although a clear upside break of March’s low of 0.7165 keeps AUD/USD buyers hopeful, the 100 and 200 DMAs, respectively around 0.7265 and 0.7285, appear as strong resistances to challenge the latest advances.