Australian dollar, AUD / USD, trade balance, crude oil – discussion points
- Australian dollar wins like Wall Street traders raise US stocks higher
- Trade data may reflect the weakness of Australian closures
- The AUD / USD trend line puts the currency pair on a brighter path
Thursday ‘s Asia – Pacific Outlook
The risk – sensitive Australian dollar moved above US dollar overnight when stock traders bought US stocks. AUD / USD rose to its highest level since August 13, while technology is difficult Nasdaq 100 The index closed 0.19% higher. The depreciation of the US dollar contributed to the Australian dollar. Australia’s second-quarter GDP outperformed estimates on Wednesday, which probably gave the currency pair extra wind.
Australia today announces its July trade balance. Analysts expect that figure to reach $ 10.2 billion, down slightly from the $ 10.5 billion June issue. Import strength will help analysts measure consumer strength during the ongoing closures in Victoria and New South Wales (NSW). Restrictions that paralyze the economy consumption of paralyzed consumers quarter, which may mean a weaker import figure. Exports may help shed light on some of Australia’s main trading partners, such as China, with iron ore being the main export economy.
Elsewhere, New Zealand announced its second-quarter trading terms this morning. Export prices rose from -0.8% in the first quarter to 8.3% and to 3% by consensus. Import prices reached 4.8%, increasing from -0.8% and exceeding the 1.8% estimate. Earlier this week, the New Zealand ANZ Business Confidence Index fell to -14.2 in August. This is the lowest reading since October 2020. The recent closures in Auckland appear to be a driver of declining confidence.
Oil the benchmarks abandoned the early growth of the session, which was achieved due to the higher-than-expected drawdown of US inventories, according to EIA data. The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC +, decided to continue to increase production at a monthly rate of 400,000 barrels per day (bpd). This decision may put some general pressure on prices in the near future, especially as COVID infections intensify worldwide.
AUD / USD technical outlook:
AUD /USD stopped his lower movement in full, due to retesting of the lower back of the Rising Wedge pattern in mid – August. The rise accelerated overnight after the currency pair fell above its 26-day exponential moving average (EMA) and declining channel. This channel can support the next lower movement. Overall, the trend line is currently raising AUD / USD biases.
AUD / USD eight hour chart
The chart has been created TradingView
Australian dollar trading resources
– Written by Thomas Westwater, DailyFX.com analyst
Be in touch Thomas, use the comments section below, or @FxWestwaterTwitter