AUD/USD chart on Trading View used for analysis
- An improved Australia trade balance released earlier today failed to impress Aussie bulls.
- AUD/USD trades weaker on the day, extends downside below 0.71 handle.
- Australia's Trade Balance printed at 1.6 billion early Thursday, beating the 1.4 billion forecast and compared to the previous reading of 1.551 billion.
- However, Australia's Imports continued to show no growth, holding steady at the 0% figure. Exports managed to reverse the previous period's -1% contraction, coming in at 1%.
- Overall bias remains firmly bearish heading into the US Non-Farm Payrolls Friday. The dollar is outperforming as U.S. data remains strong.
- U.S. services sector activity raced to a 21-year high in September and companies boosted hiring, signs of enduring strength in the economy at the end of the third quarter.
- Private employers added 230,000 jobs in September, the most since February, according to the ADP National Employment Report on Wednesday. (Beating economists’ expectations of 185,000 jobs).
- Focus on Australia Retail Sales for August at 00:30 GMT Friday. Forecast stand at 0.3% versus the previous month's 0.0%.
Support levels - 0.7085 (Sept 11 low), 0.7025 (Trendline support), 0.6976 (88.6% Fib)
Resistance levels - 0.7165 (5-DMA), 0.7205 (21-EMA), 0.7272 (55-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-fades-upside-post-RBA-extends-weakness-below-072-handle-stay-short-on-rallies-1437190) is approaching final targets.
Recommendation: Book partial profits. Trail SL to 0.7175. Watch out for break below 0.7085 for further weakness. Target 0.7025/ 0.6980.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 106.884 (Bullish), while Hourly AUD Spot Index was at -60.2031 (Neutral) at 0315 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
