Title: AUD/USD bulls trace iron ore rebound, softer USD to aim for 0.6850

7 July, 2022 7:21AM ET

By: AnalysisWatch

AUD/USD takes bids and hits fresh daily highs for first daily gain in three days.

Softer yields, positive Aussie trade figures favour buyers, rally in iron ore joins USD pullback to extend gains.

Fears of economic slowdown and China lockdown challenge corrective pullback.

Updates on recession and China's covid conditions will be key for fresh momentum

AUD/USD consolidates recent losses around a two-year low and takes bids to refresh its intraday high around 0.6830 at the start of Thursday's European session.

The Aussie pair's recent rally could be linked to positive Australian jobs data and the pullback in the US dollar. The recovery in the price of Australia's main export commodity, iron ore, is also favouring buyers of the pair.

According to the latest trade figures from the Australian Bureau of Statistics, the trade balance rose to 15,965m in May from 10,725m (expected) and 10,495m (previous). Further details show that exports rose by 9.0%, having previously fallen by 1.0%, and imports grew by 6.0%, having previously fallen by 1.0%.