Strong Trade Balance: AUD/USD Higher
Rowan Crosby • 1 min read
The AUD/USD has had a positive lead in early Asian trade. A better than anticipated trade balance.
The Aussie has been in a steep downtrend and we have another big data point tomorrow with retail sales.
The AUD is also bucking the trend of what has been a pretty strong USD. The DXY is at its recent highs and only just tested resistance. That to me is suggesting the AUD/USD has a bit of underlying strength that I possibly hadn’t anticipated.
The major negative headlines today has been the continued fall in Australian property prices. Sydney, in particular, has fallen more than 7% from its highs which has been the biggest move since the 1990’s.
I’ve I said before, don’t discount how much of the Australian economy is tied up in housing.
This is proving to be quite an important level as I mentioned earlier in the week. It looks to me like we are getting set for a move into 0.7150, which is the actual swing high.
Should we test and break that then I will have to change my downside bias at the moment.
However, until then I will be looking at the price action for a short at that point.