AUD/USD Dips on Trade Balance, Eyes Stocks and US-China Talks


  • Australian Dollar fell against its US namesake on disappointing trade balance data
  • AUD/USD prices’ decline brings key resistance in the 0.7131-0.7159 area into play
  • Aussie now eyeing risk sentiment, FOMC minutes and December’s US CPI figures

Build confidence in your own AUD/USD strategy with the help of our free guide!

The Australian Dollar was cautiously lower against its US counterpart after local trade data crossed the wires during Tuesday’s Asia Pacific trading session. November’s trade balance clocked in at A$1925m, down from the forecasted A$2175m and prior A$2013m. The worse-than-expected figure could indicate consequences of the US-China trade war, as China is Australia’s top trading partner. AUD/USD’s fall erased most of its gains from earlier in the day.

AUD/USD Chart (5-minute)

Chart prepared in TradingView

However, the slight decrease in prices may not continue as AUD/USD have recently jumped following the formation of a bullish Morning Star candlestick pattern. Despite crossing the 2018-low at 0.70211, the Aussie jumped on trade talks between US and China. The higher prices were also aided by US Dollar weakness on dovish remarks from the Federal Reserve. Now, the currency pair faces familiar resistance levels near 0.71309-0.71588. A break above this could indicate further gains for the Australian Dollar.

AUD/USD Chart (Daily)

Please add a description for the image.

Chart prepared in TradingView

Looking ahead, the pro-risk unit may continue its bearish momentum as equities have recently surged and positive developments in the US-China trade war have crossed the wires. In addition, the currency pair will be closely eyeing the release of December’s US CPI data and FOMC meeting minutes due later this week. November’s month-over-month Australian home loans may also point to further gains for the Aussie.

AUD/USD Trading Resources

— Written by Megha Torpunuri, DailyFX Research Team

Products You May Like

Articles You May Like

Chip stocks are tanking after ‘depressing’ Broadcom earnings in a bad sign for market
Donald Trump takes aim at Mario Draghi over interest rates
AUDUSD at Risk, Australia Jobs Data Underpins Another RBA Rate Cut
What Could Be’s Revenue Growth Over The Next 3 Years Post Tableau’s Acquisition?
USD/CAD: BoC to help sustain CAD appreciation near-term – CIBC

Leave a Reply

Your email address will not be published. Required fields are marked *