AUD/USD bulls rescue plans faltering

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7575 with a high of 0.7680 and a low of 0.7551.

AUD/USD has been consolidating the downside post the aftermath of the Chinese data that had Aussie bulls ducking for cover while the bears took control and put the pair back in to its pace within the broad and longer term bear trend. The numbers were a huge miss overnight in Asia, and came in the form of China'sTrade Balance (Mar). This saw CNY 18.8 bln vs exp CNY 250.0 bln, with exports -14.6% y/y (in yuan terms), while imports were -12.3% y/y (yuan terms).

Technically, we are trading on thin ice to the downside, and bids are short lived so far on the support line here. However, a break lower opens the two month support line at 0.7503. Karen Jones, chief analyst at Commerzbank explained that once it has given way, the October 2006 low at 0.7416 will be in focus, followed by the 0.7369 July 2005 low. Longer term the 61.8% Fibonacci retracement of the 2001-11 advance at .7180 could also be reached.