Aud Consolidates Above Support

last updated on

Aud Consolidates Above Support

Australian Dollar Consolidates Above 0.65 Handle

The AUD/USD pair came under pressure after the release of mixed economic data. The most noteworthy data was the Trade Balance of Australia, which fell short of the expectations. Additionally, the NFP was also positive, which is yet another negative for the AUD.

Amidst all of this, the AUD/USD is trading near 0.6570, as only a few hours are left before the end of this week's trading session. The near resistance is present at the 0.6596 - 0.6600 handle, where the 61.8% fib retracement level is also present.

Aud/Usd Needs To Break 0.66 Handle

According to currency experts, a break of the 0.66 handles means the pair can now head towards the 0.6650 and 0.6667 handles.

The other scenario is a break of 0.6550 - 0.6560 region where the 9 EMA can be seen. A break of this support will intensify the selling pressure in this pair and send it towards the 0.6500 handle.

The bigger picture is that AUD lost its charm after ending its 3-day winning streak after the release of a weak Trade Balance and unimpressive final retail sales. At the same time, the USD has been exerting pressure since the release of a strong NFP report.

The trade surplus of Australia has now reached 7280 million on a m/m basis during March against a forecast of 10400 million.

The reason behind the shrinking of the Australian trade surplus is a 2.2% decline in exports and a 4.8% increase in imports. It appears that the local demand in Australia has improved, which is amping up the imports.

On the contrary, the Australian export of minerals and metals remains weak due to the underwhelmed economic recovery in China.

If we look at the US side, the DXY is neutral to bullish, while the bond yields are also showing a little upside after the NFP.

Next week, the focus will once again shift to the upcoming economic data from the USA and Australia. But the sentiment from the previous week will most definitely favor the greenback.

Trending Stories