AUD/USD Price Analysis: A New Rally Requires Acceptance Above 0.6700

During the Asian session, the AUD/USD pair continues to face obstacles near the round-level resistance of 0.6700. The Australian dollar remained active on Thursday following the release of upbeat Australian Trade Balance data.

According to Reuters, the Australian Trade Balance data revealed that exports of Australian commodities to China reached A$19 billion ($12.71 billion) in March, up 31% from a year earlier and surpassing the previous peak from mid-2021. In addition, the Trade Balance report revealed that the Asian superpower ordered a great deal of iron from the Australian steel industry and lowered restrictions on thermal coal shipments as diplomatic ties strengthened. This has swiftly enhanced the outlook for the Australian dollar.

In the meantime, the US Dollar Index (DXY) has declined to near 101.36 as US banking anxiety and debt ceiling concerns continue to weigh. In addition, investors are cautious prior to the release of Nonfarm Payrolls (NFP) data from the United States.

AUD/USD is nearing a breach of the Inverted Head and Shoulders (H&S) pattern formed on a two-hour time frame. Typically, an inverted H&S formation denotes a protracted consolidation, and a breach of the same signifies a bullish reversal.

At 0.6688, the 10-period Exponential Moving Average (EMA) is cushioning the Aussie bulls.

In the meantime, the Relative Strength Index (RSI) (14) is attempting to move into the favorable range of 60.00-80.00. A similar occurrence will activate the upward momentum.

Moving forward, an assured step above My high on February 2 of 0.6717 will propel the Australian asset toward the high on April 20 of 0.6771, followed by the round-level resistance at 0.6800.

In a different scenario, US Dollar bulls will exercise their muscles if the Australian asset falls below the 0.6590 low from March 15. A similar event would expose the asset to a low of 0.6568 on March 8, followed by a high of around 0.6500 on November 2, 2022.