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AUD/USD dumped on poor Aus trade data, awaits RBA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bears tightened their grip on the AUD following the release of worse-than expected Australian trade numbers, knocking-off AUD/USD below hourly 200-SMA placed at 0.7590.

    AUD/USD faces double whammy

    Currently, the AUD/USD pair slips -0.41% to 0.7575, having posted fresh five-day lows at 0.7570 some minutes ago. The Aussie received double blow in the Asian trades this Tuesday as the bearish trade balance report from Australia hurt the AUD bulls big time, while on the other hand, widespread risk aversion in the markets also weighed on the higher-yielding currency Aussie. The trade deficit expanded from $3.16 billion in January to $3.41 billion in February, against expectations of a $2.44 billion gap.

    Among the Asian indices, Japan’s Nikkei is down -2.12%, Australia’s ASX 200 slides -1.32% and the Chinese benchmark, the Shanghai Composite index drops -0.30%.

    Later this session, the immediate focus remains on the RBA cash rate decision, with markets expecting a status-quo, although some remarks on the AUD levels, given the recent appreciation, cannot be ruled out.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7600/02 (round number/ 10-DMA) above which gains could be extended to the next hurdle located at 0.7634/53 (5-DMA/ daily R1). On the flip side, the immediate support located at 0.7508/00 (Mar 29 Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7480/75 (daily S3/ Mar 24 Low).
    For more information, read our latest forex news.
     

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