AUD/USD: Rally stalled at 0.7150 after Australia reported a narrower trade surplus

• AUD’s three-day winning streak seems to have stalled near 0.7150.  
• The ABS reported a weaker-than-expected trade surplus.
• The S&P 500 futures, however, are signaling risk-on action. The Aussie, therefore, could pick up a bid.

The bid tone around the Aussie dollar weakened after the Australian Bureau of Statistics (ABS) reported a weaker-than-expected November trade surplus.

As of writing, the pair is struggling to break past 0.7150, having rallied in the last three days on the back of improved risk sentiment and broad-based USD selling.

The Aussie data released a few minutes ago showed that the trade surplus narrowed to AUD 1,925 million in November, missing the estimated print of AUD 2,230 million. Notably, exports rose 1 percent, while imports jumped 2 percent. Also, the previous month’s trade balance data has been revised lower to AUD 2.013 billion, down from 2,316 billion.

A narrower trade deficit seems to have put brakes on AUD’s three-day winning streak. The bullish momentum, however, could again gather steam, as the S&P 500 futures are reporting a 0.23 percent gain at press time.

Further, dovish Fed expectations are likely to keep the greenback under pressure.

AUD/USD Technical Levels