AUD/USD hit fresh session low on dismal Aussie trade surplus

Australia trade surplus for the month of January came-in at AUD 1.3 billion, which was significantly lower than the expected print of AUD 3.8 billion.

The imports dropped 4% on the month, while exports slid 3%.

This pushed the AUD/USD to a fresh session low of 0.7644 levels. The Aussie failed to hold above the 10-DMA level of 0.7676 earlier today.

Australia reported a better-than-expected Q4 GDP print and current account deficit earlier this week. Moreover, much of the good news has been priced-in already and the currency pair is now feeling the heat of the drop in the gold prices and rise in the Fed rate hike bets.

AUD/USD Technical Levels

The spot was last seen trading around 0.7648. A breakdown of support at 0.7636 (previous day’s low) would open up downside towards 0.76 (zero figure), under which the losses could be extended to 0.7525 (Dec 14 high). On the other hand, breach of resistance at 0.7676 (10-DMA) could yield a pullback to 0.77 (zero levels). A violation there would expose 0.7741 (Feb 23 high).