AUD/USD: Australia’s trade surplus sharply narrowed in June, services sector activity rose in July


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.05% against the USD and closed at 0.7958.

LME Copper prices declined 0.01% or $0.5/MT to $6300.0/MT. Aluminium prices rose 0.9% or $17.0/MT to $1904.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7933, with the AUD trading 0.31% lower against the USD from yesterday’s close, following downbeat trade balance data in Australia.

Australia’s seasonally adjusted trade surplus narrowed more-than-expected to a level of A$856.0 million in June, amid a drop in exports. The nation had recorded a revised surplus of A$2024.0 million in the previous month, while markets were expecting it to narrow to a level of A$1800.0 million. On the other hand, the nation’s AiG performance of services index registered a rise to a level of 56.4 in July, compared to a reading of 54.8 in the previous month.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit services PMI eased to a level of 51.5 in July. In the prior month, the PMI index had recorded a reading of 51.6.

The pair is expected to find support at 0.7901, and a fall through could take it to the next support level of 0.7869. The pair is expected to find its first resistance at 0.7979, and a rise through could take it to the next resistance level of 0.8025.

Moving ahead, traders will focus on the Reserve Bank of Australia’s monetary policy statement and Australia’s retail sales data for June, slated to release tomorrow.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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