- Aussie takes a step back following worse-than-expected contraction in Trade Balance.
- Australian GDP beat from Wednesday gave buyers some confidence, but still-middling figures could take it away again.
The AUD/USD is hesitating in Asia trading, falling back into 0.7650 after Australian Trade Balance figures contracted more than expected.
The Australian Trade Balance came in at $977 million (in AUD terms), a worse-than-expected contraction compared to the forecast $1 billion measure, and an even further decline than expected on the previous reading of $1.527 billion.
The miss for Aussie Trade Balance follows a slight decline for the AiG Performance of Construction Index for May, which came in at 54.0, a touch under the previous reading of 55.4.
The slowing data for the AUD is taking the wind out of buyers’ sails in Thursday’s Asia session, and the AUD’s technical correction that has seen bullish action from the recent bottom at 0.7412 is going to face a challenge of confidence moving forward as the market’s short-term memory purges the recent Aussie GDP figures, which came in better than expected.
AUD/USD levels to watch
The Aussie’s technical outlook is still leaning somewhat bullish, and as FXStreet’s own Valeria Bednarik noted earlier, “the AUD/USD pair broke above the 61.8% retracement of its latest decline ay 0.7660, holding nearby and biased higher, as the pair is developing above all of its moving averages in the 4 hours chart, with the 20 SMA heading sharply higher above the larger ones. The Momentum indicator in the mentioned chart has eased toward its mid-line, as the pair failed to break above its daily high, but the RSI indicator holds near overbought readings, which alongside with moving averages support additional gains ahead.”
Support levels: 0.7660 0.7620 0.7590
Resistance levels: 0.7660 0.7700 0.7740
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