- AUD/USD: drops on trade balance.
- AUD/USD: commodities weighing.
AUD/USD has extended the downside in yet more poor news from the Aussie economy. Currently, AUD/USD is trading at 0.7544, down -0.25% on the day, having posted a daily high at 0.7571 and low at 0.7542.
AUD/USD was consolidating the Asian losses in Europe's morning and was sold off a further 20 pips in the NY session after opening just below the 10 & 21-Day SMAs in the AM.
Australia trade surplus narrowed in October, exports dropped 3 percent
The dollar was hardened again in the NY session on Wednesday with iron-ore and copper falling but was held up by bids at 0.7550. The ADP report was solid and in line with expectations making for a positive prelude for this week's showdown in the NFP's data ahead of the expected rate hike from the FOMC next week.
Recent US data:
- US: Non-manufacturing sector grew at a slower rate in November - ISM
- US: Service sector output expansion softens to 5-month low - Markit
- US: Private sector employment increased by 190,000 jobs in November - ADP
The Aussie GDP Q3 miss has opened speculation that the RBA might not afford to be so optimistic as it appeared to be at this week's meeting. The market was looking for a more dovish rhetoric and instead, there was optimism around growth in wages from the RBA. However, the GDP data has the market thinking again.
Techs are bearish, RSIs biased down & pair is back below the 10 & 21-Day SMAs. Valeria Bednarik, chief analyst at FXStreet explained that the short-term, technical readings in the 4 hours chart back an extension downward. "The price is now developing well below a bearish 20 SMA, while technical indicators present a strong downward momentum well below their mid-lines."
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