AUD/USD Review: knocking lower on sneaky Aussie Trade Balance
|- The AUD slipped lower on a Trade Balance release with a poor underlying balance.
- Australian Retail Sales remains on the economic calendar for the week, rounding out the Aussie's action on Friday.
The AUD/USD is trading down into 0.7375 after slipping from the 0.7400 major level on a tricky Australian Trade Balance release that saw both Imports and Exports dip lower compared to the previous period.
Australia's Imports declined by -1%, while Aussie Exports contracted from 4% to 3%, leaving the Trade Balance figure lop-sided, which came in at a stellar $1.8 billion, far above the forecast $900 million, though with the contraction in imports leaving the balance of trade off-balance, traders are taking the overall reading to the downside. Friday brings Australia's Retail Sales figures, which will be a last chance for the AUD to inspire some bullish confidence this week.
Asia session currencies are seeing a retreat in risk appetite as trade headlines take the wind out of market sentiment's sails; US President Donald Trump confirmed he was looking to increase tariff rates on a planned $200 billion worth of Chinese goods from 10% to 25%, and broader markets are striking a cautious note in the face of rising trade tensions between the US and China, Australia's largest trading partner.
AUD/USD Technical Analysis
The Aussie is slipping into recent lows, though the AUD/USD's rough sideways channel remains in place, and directional momentum remains limited; the current drop from near 0.7450 is likely to face quick support as major pairs revert to their opening prices for the week.
AUD/USD Chart, 15-Minute
| Spot rate: | 0.7381 |
| Relative change: | -0.28% |
| High: | 0.7410 |
| Low: | 0.7378 |
| Trend: | Bearish |
| Support 1: | 0.7378 (current day low) |
| Support 2: | 0.7358 (previous week low) |
| Support 3: | 0.7317 (four week low) |
| Resistance 1: | 0.7410 (current day high) |
| Resistance 2: | 0.7400 (major technical level) |
| Resistance 3: | 0.7440 (current week high) |
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.