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When is the Aussie Trade Balance, and how could it affect the AUD/USD?

Aussie Trade Balance overview

Australia's latest Trade Balance figures are due soon at 00:30 GMT for Thursday, dropping onto quiet markets and expectations are calling for Australia's balance of trade to bump higher to $3.2 billion AUD, up from the last reading of $3.017 billion. Australian Exports in September last came in at 1%, while Imports for the same period spread the middle at -1%, and bullish-hopeful traders could be hoping for a recovery in the previously-negative Import figure to help the Aussie Trade Balance recover ground after a disappointing week.

How could it affect the AUD/USD?

The Aussie is barely keeping itself afloat above the critical 0.7250 level, and as noted by FXStreet's own Valeria Bednarik, AUD/USD remains pinned near oversold territory, but plenty of room remains below: "the pair heads into the Asian opening barely trading above 0.7250, and short-term bearish according to the 4 hours chart, although holding above the critical 0.7250 level, perceived as a line in the sand. In the mentioned time-frame technical indicators remain at their daily lows near oversold readings, while the pair is ending the day below the 100 SMA and further below a mild-bearish 20 SMA. A quick recovery above the 0.7300 level once the market resumes normal activity, will indicate bulls are still dominating the pair."

Support levels: 0.7250 0.7210 0.7175

Resistance levels: 0.7300 0.7340 0.738

Key notes

Trading the Aussie with Australia Trade Balance

AUD/USD analysis: Australian trade balance and retail sales up next

About the Australian Trade Balance

The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD. 
 

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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