AUD/USD (current price: 0.7603)
The Australian Dollar had a very busy morning session with the rate decision of the local central bank, and the release of the Trade Balance data. The RBA kept the benchmark rate unchanged at 2% while the trade data came in worse than expected at -3.41 billion versus the consensus of -2.55 billion. Also, U.S. Factory Orders came in much worse than expected yesterday, at -1.7%, keeping U.S. economic data in the uncertain territory. All in all, the Aussie is unchanged this morning after yesterday’s steep fall, but the negative Trade Balance data suggests that more downside is possible today, with strong support only found near 0.745.
Our assessment: The Aussie might still be headed lower on the short-run after breaking below the 0.76 level. AUD/USD is still looking overbought following the strong run-up since January.
