The cross has been facing strong resistance at 20dsma seems at 0.7230. The cross has been moving higher for four consecutive days managed to close above 50dsma.
The Aussie dollar gains demand after the Trade balance and better China services PMI numbers.
Australian September trade in goods and services posted -23.17 billion Australian dollars, is expected to -29.00 billion Australian dollars, the previous value of -30.95 million.
Australian September retail sales are 0.4%, expected 0.4%, the previous value of -0.4%.
Australian retail sales in the third quarter by 0.6% qoq, 0.7% is expected, the former value of 0.8%.
China October new fiscal services PMI 52.0, the previous value of 50.5.
China October new fiscal comprehensive PMI 49.9, the previous value of 48.0.
On the higher side supply zone remains between 0.7280 and 0.7300.
Traders eye US data and Yellen testimony.
US ADP non-farm payrolls: The ADP report bounces in September after July and August below expectation readings. In October economist expect 180k compared to September’s 200k.
ISM non-manufacturing PMI: The September index fell to 56.9 compared to Augusts’ 59.00 and the index was peaked in August at 60.3.
In October, economist expects another drop at 56.50.
Yellen testifies: Yellen is due to testify on bank regulations before the House of Financial Services Committee in Washington DC.
The near term possible to cap between 0.7260 and 0.7300 levels. In the hourly chart, we can observe negative divergence in progress.