AUD/USD pegging into fresh lows on its way to 0.7200 on waning risk appetite

• Risk appetite in early Thursday action is heading south as investors find themselves overly cautious.
• Australia’s Trade Balance missed expectations broadly, devouring bullish expectations for the day.

AUD/USD is marking in new lows for the week below 0.7230 as risk appetite drains away in the Pacific-Asia market session, fueled by an unexpected decline in Australia’s Trade Balance.

Australia’s Trade Balance clocked in at just 2.316 billion, sliding over 600 million from the previous reading, and falling far below the market’s median forecast of 3.2 billion; the decline in Australia’s seasonally-adjusted balance of trade is largely owing to a surprise expansion of Exports, which grew by 3%, while Imports remained steady at 1%, but Australia’s export-heavy economy needed a positive read to keep buyers in the fold, and the Trade Balance slide has helped spark a fresh risk run on the Antipodeans heading into the latter week.

The Aussie initially  saw a 17-week high at the open on Monday, but a steady slide has seen the AUD/USD pairing tumble back into familiar mid-term ranges, forming bearish candles for four straight days and the pair down -2.25% peak-to-trough, and the Aussie is geared for another retest of support at the critical 0.7200 handle.

AUD/USD Technical Levels