Topic: Markets Roundup by Scandinavian Capital Markets
The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of AUDUSD to less than 0.7900 following some key economic releases. The technical bias shall remain bearish because of a lower high in the ongoing downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7952. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
Australia Trade Balance
Australia has slipped to a heavy trade deficit in December after imports surged during the month.
The trade balance for the month fell to a deficit of $1.36 billion, down from a revised $36 million surplus in November and against market expectations for a surplus of $200 million.
Exports were up by $510 million or 2.0 per cent for the month led mainly by an increase in shipments of iron ore and coal, the country’s top two
export earners, the Australian Bureau of Statistics said.
However, imports jumped by $1.9 billion or 6.0 per cent during the month, mainly on account of a surge in imports of fuel as well as machinery and equipment.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.