AUD/USD in stasis around 0.74, upbeat Aussie trade data fails to lift spirits

Australia trade surplus widened in June but is offering little help to the Aussie dollar.
The escalating US-China trade war is likely hurting the AUD.

Omkar Godbole FXStreet Contributor

Australia June trade surplus bettered estimates, but the upbeat data has failed to put a bid under the Aussie dollar, leaving the AUD/UD pair flat lined around 0.7405.

The Sino-US trade tensions are likely keeping the gains under check. The US President Trump upped the ante on trade war on Wednesday by proposing higher 25 percent tariff on $200 billion worth of Chinese imports.

The increase from a previously proposed 10 percent duty, if confirmed, could yield a retaliatory action from China, leading to further escalation of trade war.

Consequently, the Aussie dollar is showing no signs of life despite a wider trade surplus. Another school of thought says the trade data does not impact RBA expectations and hence is not having any impact on the Aussie pairs.

At press time, the currency pair is changing hands at 0.7405 and could crater below 0.74 if the Chinese currency slides on trade tensions.

AUD/USD Technical Levels

Resistance: 0.7429 (previous day's high), 0.7454 (50-day MA), 0.7484 (July 10 high).

Support: 0.7370 (July 27 low), 0.7318 (July 20 low), 0.73 (psychological level).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Shrinking
1H	Bearish	Neutral	Low
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Jul 31, 18:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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