Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
AUD/USD Prices Aim Higher on Trade Balance Ahead of RBA Decision

AUD/USD Prices Aim Higher on Trade Balance Ahead of RBA Decision

Megha Torpunuri, Contributor

Share:

What's on this page

TALKING POINTS – AUD/USD, TRADE BALANCE, TRADE WARS, EQUITIES

  • AUD/USD rallied following the release of outperforming trade balance data
  • Dominant downtrend remains intact as 2015 support levels may turn into resistance
  • Risk aversion, US employment data, and RBA November meeting in focus next

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

The Australian Dollar strengthened against its US namesake after local trade balance data crossed the wires early into Thursday’s Asia Pacific trading session. September’s trade balance clocked in at A$3017m, beating both economists’ forecasts of A$1700m and August’s A$1604m. The third quarter’s export price index similarly outperformed at 3.7%, compared to the estimate of 2.2% and the 1.9% previous. Meanwhile, the 3Q import price index was 1.9%, with expected 1.0% and 2Q’s 3.2%. The uptick in trade figures may continue, as President Trump recently alluded to a “great deal” with China on trade that caused the Aussie to briefly soar.

AUD/USD Chart (5-minute)

AUD/USD 5-minute chart

Chart prepared in TradingView

Looking past the jump in prices, AUD/USD has remained in a dominant downtrend channel for the majority of this year due to interest rate differentials and global risk aversion. The currency pair recently carved a new 2018 low of 0.7021 and is now facing resistance at levels that formerly served as support. An invalidation of the descending trend line and reversal of these levels back to support may indicate a bearish reversal to come.

AUD/USD Chart (Daily)

AUD/USD Daily Chart

Looking ahead, the sentiment-linked unit will continue to closely eye risk trends. Continued broad-based market aversion and losses in global equities may mean further losses in the long-run for the Aussie. In addition, AUD/USD will also be closely eyeing the releases of US employment and manufacturing data, as well as the Reserve Bank of Australia’s cash rate target at their November 6th meeting.

AUD/USD TRADING RESOURCES

--- Written by Megha Torpunuri, DailyFX Research Team

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES