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Forex: AUD/USD strengthens bullish case; 1.0516 new high post China trade

FXstreet.com (Barcelona) - The AUD/USD is soaring from a session low of 1.0473 to just hit its highest since Jan 24 at 1.0516. The China trade balance has been the direct catalyst taking the Aussie higher, as Chinese imports increased above expectations.

The move in the Australian Dollar, is being fueled by the fundamental conclusion that an increase in China imports suggest good prospects for the exports-led Australian economy going forward. From a technical view, the Aussie looks poised to enjoy blue skies with no significant supply seen until 1.0625, thus there is further room for the pair to appreciate.

From a conventional technical view, the area of resistance 1.0580 will too surely present some challenge to the current buying impetuous. Traders keen to join the uptrend have two key demand levels at 1.0463/1.0450 and 1.0423/13, quite far away from current price. A patter developing in the H1 chart is the respect of the 20-day MA on recent pullbacks, something to bear in mind.

"Any weakness should be interpreted as buying opportunity as long as fresh demands mentioned not absorbed" says Ivan Delgado, head of Asian editors at FXstreet.com.

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