The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Wednesday, dragging the price of AUDUSD to less than 0.7030 following the release of some key economic news. The technical bias remains bearish because of a Lower Low in the recent downside move.
As of this writing, the pair is being traded around 0.7027. A support may be noted near 0.7000, the confluence of psychological number as well as today’s intraday low ahead of 0.6826, the swing low of the last major downside move as demonstrated in our daily chart.
On the upside, the pair is expected to face a hurdle near 0.7100-0.7102, the confluence of 50% fib level as well as psychological number ahead of 0.7140, the swing high of the last major upside rally. The technical bias will remain bearish as long as the 0.7140 resistance area is intact.
Australia Trade Balance
Australia printed another monster trade deficit of more than $3 billion for the month of December, according to the latest data from the Australian Bureau of Statistics. At $3.535 billion, the balances on goods and services was more than $1 billion more than the $2.5 billion deficit economists had forecast.
Considering the overall technical and fundamental outlook, selling the pair around current levels still appears to be a good strategy in short to medium term.