FXstreet.com (Barcelona) - The Australian Dollar is giving back some of its early gains after the Australian trade balance report confirmed the country's largest trade deficit since March 2008. The number stood at -AUD2.63bn, worse than -AUD2.3bn expected and also surpassingWestpac's –AUD2.4bn trade gap projections.

The AUD/USD seems poised to retest bids around 1.05 after printing a session high of 1.0515. While on the upside 1.0525 Jan 3 high is the next hurdle to breach should buyers gain confidence for further uplegs aimed at last December highs, on the downside a clear break below 1.0480, 2013 sequence of lows, should be achieved before sellers can re-group to try lower quotes, with Jan 7 low at 1.0465 another key swing low that may act as support.