FXWIREPRO: AUD/USD Weak ahead of RBA, Posts Fresh Five-Day Lows at 0.7570
- Dismal Australia trade data along with widespread risk aversion weighing heavily on the high-yielding Aussie.
- Bears tightened their grip pushing AUD/USD to fresh five-day lows at 0.7570.
- Australia's trade deficit expanded from $3.16 billion in January to $3.41 billion in February, against expectations of a $2.44 billion gap.
- Asian indices trade weaker, Japan’s Nikkei is down -2.12%, Australia’s ASX 200 slides -1.32% and the Chinese benchmark, the Shanghai Composite index drops -0.30%.
- Immediate focus remains on the RBA cash rate decision, markets expecting no change to policy, although some jawboning on the AUD levels, given the recent appreciation, cannot be ruled out.
- US services PMI and JOLTS jobs openings data are due later today. Focus will remain on FOMC minutes due tomorrow for fresh cues on the US interest rates outlook.
- Technical outlook for the pair remains majorly bearish, with strong trendline support at 0.7555.
- Breaks below could see test of 0.7510 and then 0.7480 levels.
- Our previous call (http://www.econotimes.com/FxWirePro-Aussie-sold-off-on-disappointing-data-good-to-short-AUD-USD-rallies-188530) has hit target 1 and is approaching target 2.
Recommendation: Lower trailing stop to 0.76, target 0.7510/ 0.7480 ob breaks below 0.7555
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