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  • Trade surplus widens more than expected in Australia.
  • US Dollar Index struggles to find direction.
  • Coming up: Weekly jobless claims, Q4 nonfarm productivity & labour costs from the U.S.

After slumping to its lowest level in more than 2-months at 0.7020 yesterday amid the disappointing GDP data from Australia, the AUD/USD pair is correcting this week’s losses and hopes to snap the 7-day losing streak. As of writing, the pair was trading at 0.7048, adding 0.22% on a daily basis.

Earlier today, the data published by  the Australian Bureau of Statistics showed that the trade surplus in January rose to AUD 4.55 million from AUD 3.8 million and surpassed the market expectation of AUD 3 million to help the currency shake off the bearish pressure. Additionally, retail sales, which declined by 0.4% in December, rebounded in January and increased by 0.1% to provide additional support to the pair.

In the meantime, the US Dollar Index is moving up and down in a tight range below the 97 handle for the second day in a row suggesting that investors are waiting for the next catalyst before deciding where the currency is likely  to go next. Later in the session, weekly jobless claims and fourth quarter unit  labour costs & nonfarm productivity data from the U.S. will be looked upon for fresh impetus.

Key technical levels  

AUD/USD

Trends:
       Daily SMA20:  0.7112
       Daily SMA50:  0.7134
       Daily SMA100:  0.7162
       Daily SMA200:  0.7245
Levels:
       Previous Daily High:  0.7092
       Previous Daily Low:  0.702
       Previous Weekly High:  0.7199
       Previous Weekly Low:  0.7069
       Previous Monthly High:  0.7285
       Previous Monthly Low:  0.7053
       Daily Fibonacci 38.2%:  0.7048
       Daily Fibonacci 61.8%:  0.7065
       Daily Pivot Point S1:  0.7002
       Daily Pivot Point S2:  0.6975
       Daily Pivot Point S3:  0.693
       Daily Pivot Point R1:  0.7074
       Daily Pivot Point R2:  0.7119
       Daily Pivot Point R3:  0.7146