AUD/USD pare losses, recovers back above 100-DMA

Having dropped below 100-day SMA to a nearly one month low, the AUD/USD pair has managed to recover some of its lost ground.

Currently quoting around 0.7540-45 region, the pair seems to have digested worse-than-expected Chinese trade balance data and is benefitting from a broad based greenback pull-back witnessed in the last hour of trading. 

In absence of any fundamental development, the current bounce back in the pair could be attributed to profit-taking from the proximity of 100-day SMA support. 

Later during NA trading session, the release of weekly jobless claims data from the US will be looked upon for short-term trading opportunities ahead of Friday's monthly jobs report, which would trigger the next leg of movement for the major.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd., notes, "The price is still showing hesitation to clearly break below daily cloud base at 0.7537, as subsequent bounce returned back into cloud."

"Overall tone remains bearish and requires close below daily cloud to confirm resumption of larger downmove from 0.7708 (29 Sep high), which focuses key short-term support at 0.7740."

"On the other side, repeated failure to close below cloud base would signal stall of n/t bears. Session high at 0.7568 marks initial resistance, ahead of daily Kijun-sen line at 0.7585, break of which would ease downside pressure."

"Res: 0.7568; 0.7585; 0.7616; 0.7626
Sup: 0.7537; 0.7528; 0.7504; 0.7476"