AUD/USD defends trendline support despite weak data
|- Aussie holds key trendline support.
- Australia reported a narrow trade surplus.
The AUD/USD pair came under pressure today, courtesy of a dismal trade balance data, but so far has managed to defend the key technical support.
The support (0.7540) of the descending trend line sloping downwards from the Sep. 20 high and Oct. 20 high remains intact. As of writing, the spot is trading at 0.7548 levels; down 0.19 percent on the day.
The spot was offered at 0.7570 after the ABS data showed the trade surplus narrowed to AUD 105 million in October from the September figure of AUD 1604 million. The markets were expecting a trade surplus of AUD 1375 million. Ahead in the day, the spot could breach the trendline support if the US 10-year treasury yield rises.
AUD/USD Technical Levels
Ivan Delgado, Chief Editor at FXStreet, writes, "as per technicals and levels, the 20-hourly MA crossed the 200-hourly MA on the release of the Aus Q3 GDP miss, communicating that sellers have now the upper hand, for an expected move to 0.7560, which is precisely where the rate landed. The next key support is found between 0.7550 mid-round number, which should attract bids given the buoyant yield curve, ahead of 0.7530, Nov 20 lows, and ahead of 0.75 psychological barrier. On the upside, buyers have to take control by lifting prices and accept them above 0.7580, which coincides with todays daily pivot; such scenario would potentially lead to 0.76 as next key target, where large offers are expected to rest. Note, all short-term technical studies should be thrown out of the window in 24h when the US NFP is release.
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