AUD/USD: Revisits daily lows, China data-led rally fizzles

The AUD/USD pair resumed its corrective slide in early Europe on the back of profit-taking, following a brief spike to fresh five-week peaks post-China trade data release.

AUD/USD back below 50-DMA at 0.7450

Currently, the AUD/USD pair trades -0.16% lower at 0.7446, eyeing for a test of daily lows struck at 0.7430 in early Asia. The Aussie erased minor gains and reverted to the red zone as markets shrugged-off better Chinese imports data and resorted to profit-taking after the RBA-backed extensive rally witnessed yesterday. China’s exports fell 4.1% y/y in May and matched estimates, while imports dropped just 0.4%, against a 6.8% decline expected.

Looking ahead, the major is likely to get influenced by the broader market sentiment amid a lack of relevant macro news from both continents today. While focus shifts towards Chinese CPI data due tomorrow.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7482/0.7500 (May 6 High// round number) above which gains could be extended to the next hurdle located at 0.7526 (daily R2). On the flip side, the immediate support located at 0.7402/0.7392 (100 & 5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7304 (10-DMA).