Australian Dollar remains steady following China’s Trade Balance data

Following China's Trade Balance data, the Australian Dollar steadied at around 0.7210 against the US Dollar on Tuesday. The pair remained stable as it had been on a four-day winning streak. China's Trade Balance for August came in at $119.09 billion, closely matching the $119.1 billion estimate, and marked an increase from the July figure of $112.5 billion.

Exports surged by 25% year-over-year in August, outpacing the previous reading of 23.9%. However, imports rose by 28.2% year-over-year, less than the expected 30%. The Australian Dollar faced downward pressure due to a sharp decline in domestic consumer sentiment, with the Westpac Consumer Confidence index dropping 5.2% to 84.4 in September.

Market participants noted that further declines for AUD/USD might be limited by a broader weakness in the US Dollar. Analysts cautioned that despite the recent stabilization, structural concerns remain, particularly concerning US fiscal sustainability. The AUD/USD pair currently trades at 0.7210, maintaining a bullish bias as it surpasses both the nine- and 50-day Exponential Moving Averages.

The 14-day Relative Strength Index stands at 66, indicating firm upside momentum without being overbought. Should the pair encounter selling pressure, initial support may be found at the nine-day EMA near 0.7187, followed by further support at the 50-day EMA at 0.7094.