On the first round of key trade data for the Pacific regions, today, the Aussie has just popped into a fade from 0.7826 to 0.7838, currently trading at 0.7831, up 0.08% on the day so far. Australia trade balance moved back into the green for January logging a surplus of AUD 1055 million, far wider than the AUD 300 million estimate.
We now wait to see what we get from the Chinese trade balance. The Aussie data leans against Australia’s GDP figures that came in on the soft side, although markets are a little more stable in the higher beta space which is benefitting the Aussie in an improved risk sentiment environment and spikes in AUD/JPY continue to offer a bullish bias for the major commodity currency. 0.7830 was a hard level resistance level overnight while a slide in stocks weighed, but Asia is making for a better platform for the Aussie currently.
With the 18th Feb 0.7819 high now broken, bulls will target 0.7988/91 levels on the wide of a break of 0.7840. 0.8124/62 (the September 2017 high, the May 2015 high and long-term 50% Fibonacci retracement of the move down from 2014) is the next fortress. To the downside, a break of 0.7680 and 0.7637 come before the 0.7581 2016-2018 uptrend level.
Source : FXstreet