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.

Aussie Outlook

The AUD/USD is trading above the major level at 0.7100.

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.