AUD/USD revisits sub-0.74 levels after Aussie trade data

AUD/USD drops to 0.7398 after rejection at 0.7420.
Australia's trade surplus rose more-than-expected in October.
The AUD bulls ignore the upbeat data, take a breather.

Omkar Godbole FXStreet Contributor

The Aussie dollar isn't getting any lift from the upbeat Aussie data released an hour ago. The AUD/USD pair is currently trading in the red near 0.7403, having printed a low of 0.7398 soon before press time.

Australia's trade surplus rises

Australia's exports rose 5.4% month-on-month in October, following September's 6% rise. Meanwhile, domestic demand, as represented by imports, increased just 0.6% following September's 6.5% contraction.

The trade surplus rose to AUD 7,456 million from AUD 4,840 million, beating the expected rise to AUD 5,800 million. A widening of trade surplus is positive for the domestic currency.

However, the data released at 00:30 GMT has failed to draw bids for the Aussie dollar.

The currency looks to be taking a breather, having rallied by over 400 pips from 0.6991 to 0.7420 in the past month. The currency pair closed above 0.74 on Wednesday – the first close above the psychological hurdle since Aug. 8, 2018.

The factors responsible for the recent sell-off in the dollar, such as twin US deficits, expectations for additional US fiscal stimulus, and hopes for swift global economic recovery on potential coronavirus vaccines, could continue to keep the AUD better bid heading into the year-end. Should the equity markets correct, the US dollar will likely pick up a bid, pushing AUD/USD lower.

Technical levels

AUD/USD

Overview
Today last price	0.7401
Today Daily Change	-0.0004
Today Daily Change %	-0.05
Today daily open	0.7405

Trends
Daily SMA20	0.7314
Daily SMA50	0.7196
Daily SMA100	0.7199
Daily SMA200	0.6869

Levels
Previous Daily High	0.741
Previous Daily Low	0.735
Previous Weekly High	0.7399
Previous Weekly Low	0.7264
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7387
Daily Fibonacci 61.8%	0.7373
Daily Pivot Point S1	0.7367
Daily Pivot Point S2	0.7329
Daily Pivot Point S3	0.7308
Daily Pivot Point R1	0.7427
Daily Pivot Point R2	0.7448
Daily Pivot Point R3	0.7486

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.