AUD/USD steadies near 0.7200
|- Australian trade surplus narrows in October.
- RBA deputy governor Guy Debelle's dovish remarks weigh on the AUD.
- Coming up: The U.S. trade balance, ADP employment data, and thşrd quarter unit labour costs.
After losing nearly 100 pips on Wednesday, the AUD/USD pair extended its slide today and touched its lowest level in 9 days as the AUD weakened amid disappointing macroeconomic data releases from Australia and some dovish remarks from the RBA's deputy governor Guy Debelle. As of writing, the pair was down 0.9% on a daily basis at 0.7205.
Earlier today, the data released by the Australian Bureau of Statistics showed that the trade surplus narrowed to 2.316M in October to fall short of the market expectation of 3.2M as imports increased 3% while exports rose only 1% in that period. Meanwhile, RBA's Debelle said that the next move in interest rates was more likely to be up than down but added that any rise in rates was still some way off. "It is the level of rates that matter and they can still move lower," Debelle stated.
Additionally, escalating tensions between China and the U.S. over the arrest of Huawei's CFO caused concerns in the markets and weighed on the AUD today.
On the other hand, the US Dollar Index continues to float near the 97 mark, making it difficult for the pair to recover its losses. Later in the day, the ADP private sector employment reports, the trade balance data and FOMC members Bostic and Williams' speeches will be looked upon for fresh impetus.
Technical levels to consider
With a daily close below 0.7200 (psychological level/daily low), the pair could target 0.7160 (Nov. 13 low) and 0.7100 (Oct. 3 low). On the upside, resistances could be seen at 0.7265 (daily high), 0.7355 (Dec. 5 high) and 0.7400 (Dec. 3 high).
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