AUD/USD: Australia’s trade surplus widened less than expected in June


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.34% against the USD and closed at 0.7125.

LME Copper prices declined 0.1% or $5.5/MT to $6,441.0/MT. Aluminium prices fell 0.4% or $6.0/MT to $1,679.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7130, with the AUD trading 0.07% higher against the USD from yesterday’s close.

Overnight data showed that Australia’s trade surplus widened to A$8.2 billion in June, less than market consensus for a surplus of A$8.8 billion and compared to a surplus of A$8.0 billion in the prior month. Meanwhile, retail sales rose 2.7% on a monthly basis in June. In the previous month, retail sales had recorded a surge of 16.9%.

The pair is expected to find support at 0.7089, and a fall through could take it to the next support level of 0.7048. The pair is expected to find its first resistance at 0.7159, and a rise through could take it to the next resistance level of 0.7188.

Moving ahead, traders would keep an eye on Australia’s AiG performance of construction index and the Commonwealth Bank services PMI, both for July, along with the unemployment rate for 2Q 2020 and home loans for June, slated to release overnight.

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

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