AUD/USD: Australia’s trade deficit hit its highest level in more than a year in November


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.42% against the USD and closed at 0.7864.

LME Copper prices rose 1.2% or $87.0/MT to $7202.5/MT. Aluminium prices declined 0.5% or $11.0/MT to $2230.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7857, with the AUD trading 0.09% lower against the USD from yesterday’s close, following downbeat Australian trade balance data.

Overnight data revealed that Australia surprisingly posted a trade deficit of A$628.0 million in November, recording the biggest deficit in more than a year, after registering a revised deficit of A$302.0 million in the previous month, thus stoking worries that trade could act as a drag on the nation’s economic growth. Markets were expecting the nation to register a trade surplus of A$550.0 million.

The pair is expected to find support at 0.7832, and a fall through could take it to the next support level of 0.7806. The pair is expected to find its first resistance at 0.7876, and a rise through could take it to the next resistance level of 0.7894.

Next week, investors would focus on Australia’s AiG performance of construction index, building approvals and retail sales data.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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