Aussie Dollar Falls After Australia’s Trade Balance News

FXOpen

The Australian Dollar (AUD) inched lower against the US Dollar (USD), dragging the price of AUDUSD to less than 0.7350 following the release of Australia’s trade balance news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7319. A support can be seen around 0.7300, the psychological number ahead of 0.7159, the swing low of the last major downside move as demonstrated in the given below daily chart. A break and daily closing below the 0.7159 shall incite renewed selling interest, validating a move towards the 0.7000 support area.

Aussie Dollar Falls After Australia’s Trade Balance News

On the upside, the pair is expected to face a hurdle near 0.7332, the horizontal resistance area ahead of 0.7456, another critical resistance area and then 0.7500, the psychological number. The technical bias shall remain bearish as long the 0.7498 resistance area is intact.

Australia’s Trade Balance

Australia’s trade balance improved by $2,362 million to a surplus of $1,243 million in November. It was the first monthly trade surplus in 33 months. The rolling 12-month deficit improved from $28.6 billion to $23.8 billion (smallest deficit in 18 months).

Australia’s rolling annual trade surplus with China hit a 15-month high of $16.2 billion in November although still well down from the record high of $42.8 billion set in April 2014.

Air traffic: In October the number of passengers on the Sydney-Melbourne route was up by 1.1 per cent on a year ago to a record 775,717. The Sydney-Melbourne route is one of the busiest air routes in the world. The Sydney-Melbourne route is also a key measure of business activity. On all domestic flights passenger traffic rose in October compared with a year ago but the number of flights fell so the smoothed load factor lifted to 4-year highs.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

European Currencies at Strategic Levels EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August EUR/USD Analysis: Price Reaches the Level of 1.1000 Market Analysis: EUR/USD Extends Rally While USD/JPY Nosedives USD/JPY, GBP/USD, and EUR/USD Market Analysis: The US Dollar Continues to Fall

Latest articles

Forex Analysis

European Currencies at Strategic Levels

The downward trend in the US currency continues to gain momentum. Thus, the euro/dollar pair yesterday tested important resistance at 1.1000, the pound/dollar pair strengthened to 1.2700, and the usd/cad pair fell below 1.3600.

Indices

Market Analysis: Stock Market Reaction to US GDP News

According to data released yesterday, the US economy is growing at a stronger pace than expected. Thus, US GDP in the 3rd quarter increased by 5.3% in annual terms (an increase of 4.9% was expected). Combined with softening

Cryptocurrencies

BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive

During November, the price of bitcoin increased by approximately 10% in anticipation of the launch of a bitcoin ETF. But the positive sentiment of crypto investors is seriously overshadowed by news regarding Binance: → Changpeng Zhao resigned as head of Binance.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.