Australia is very closely linked to the Chinese economy and relies on Chinese imports. But this morning, after Australian critics of China’s management of the Covid-19 outbreak, China decided to stop beef imports from some Australian slaughterhouses. Adding to this, the April NAB Business Confidence was released at -46 (versus -75 expected).
From a technical standpoint, AUD / USD remains on a daily chart despite a slight pullback this morning. In fact, in the longer term, it has broken above a declining trend line and is above its 50-day moving average (in blue) as the daily RSI is within its buying range. Readers may therefore consider the potential for further advances over horizontal support of 0.6250. The closest resistance would be set to horizontal resistance of 0.6570 and another would be set to set to 0.6685 by extension.