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  • AUD/USD steps back from the day’s high of 0.7190 after weaker than expected trade data.
  • Australia’s Trade Balance shrunk way past-5114M to 5.63M in September.
  • Risk catalysts wobble as Biden inches closer to the US presidency, chatters over voting count in Pennsylvania.
  • US election updates, Fed meeting will be the key catalysts.

AUD/USD steps back from the day’s high of 0.7190 to 0.7178 amid Thursday’s Asian session. The pair recently reacted to the Australian trade numbers for September. Also challenging the bulls are mixed signals by the risk catalysts based on the US election updates.

Australia’s September month Trade Balance eased to Australia dollar 563 million as the big -5.9% drop in Imports supersede +3.9% rise in Exports.

Read: Aussie Trade Balance for September 5.63bn surplus vs the expected 3.7bn

Other than the downbeat data, a pause in the previous risk-on mood also challenges the AUD/USD bulls. While portraying the same, S&P 500 Futures print mild gains despite Wall Street’s upbeat performance whereas US 10-year Treasury yields drop below 0.75% by press time.

Although Democratic candidate for US elections, Joe Biden, inches closer to the victory with the recent Michigan win, the current President Donald Trump and the team’s pressure on Pennsylvania’s ballot-count increasing the market uncertainty.

Looking forward, US election updates will keep entertaining the markets while the US Federal Reserve’s likely cautious tone can also probe the pair traders.

Read: Fed Preview: Powell set to see glass half full, unless he has depressing NFP data

Technical analysis

The previous resistance from mid-August, currently around 0.7140, restricts short-term AUD/USD pullback moves while bulls await a clear break above 50-day SMA, near 0.7180, to attack the 0.7200 round-figure.