AUD/USD Review: bounce back into 0.7400 stalls within consolidation

• The Aussie faces knock-on action from Wednesday's China Trade Balance figures.
• A lack of action from the RBA has left the AUD/USD in a sluggish pattern.

The AUD/USD is trading just above the 0.7400 technical level after finding support through Tuesday's London market session, and now the Aussie faces a Wednesday market window with China trade data promising knock-on volatility.

The Aussie is still trading within the constraints of a consolidation range that kicked in mid-June, and rough range trading is taking its toll on the AUD. Tuesday delivers mid-tier indicators for Australia's economy, starting off with Westpac's Consumer Confidence for August at 00:30 GMT (last 3.9%), Home Loans data for June at 01:30 GMT (forecast 0.2%, last 1.1%) alongside June's Investment Lending for Homes (last -0.1%). Middling growth figures for the Australian economy has lift the Aussie in a lurch, as buyers struggle to find reasons to pick up the AUD in the broader markets.

The Reserve Bank of Australia (RBA) celebrated its second anniversary of no policy changes as the central bank sits in wait-and-see mode, and widening interest rate divergences leave the Aussie in the back row, while the US-China trade war continues to drag risk sentiment lower in the Asia-Pacific theater.

China's Trade Balance figures are also expected today after 02:00 GMT, and traders will be paying extra attention to the trade figures as the US and China gear up to continue hurling new tariffs at each other, threatening to continue sinking the AUD in the process.

AUD/USD Technical Analysis

Aussie bulls managed to break the 0.7400 level in Tuesday's push upwards, but the current consolidation cap at 0.7440 still remains unchallenged, gaining resistance strength from a declining 50-day MA currently sitting at 0.7446. In its eight consecutive week of range trading, the goal for momentum-seekers will be to break into 0.7500 at the high side, while sellers will be seeking to push the AUD/USD back below 0.7350.

AUD/USD Chart, 15-Minute