AUD/USD: stalling for now below April lows ahead of Trade Balance

Currently, AUD/USD is trading at 0.7425, up 0.03% on the day, having posted a daily high at 0.7431 and low at 0.7420.

AUD/USD is currently consolidated in a quiet Asian session awaiting the trade balance. The March trade balance is expected by Westpac to be $4.0 bn, up $0.4 bn from Feb. Export earnings rise a forecast $0.8bn, +2.5%, and for imports, we've factored in a rise of 1.5%, $0.4bn.

This is the quiet-after-the-storm, with the overnight market dominated by US data and the FOMC who sound ready to go in June, so long as the status quo continues. 

The main takeaways fro the statement were as follows: 

• The decision was unchanged and unanimous.
• Slow down in GDPQ1 is viewed as transitory.
• Expects the economy to grow at a moderate pace.
• Fundamental consumption growth remains solid.
• Economy roughly balanced.
• Household spending up modestly.
• 12-month inflation running close to its 2% goal.
• Fed repeats it maintaining balance-sheet reinvestment strategy.
• Fed expects the economy to warrant gradual rate hikes.
• core inflation continued to run somewhat below 2%.
• Job gains solid.
• The labour market continued to strengthen as growth slowed.

Meanwhile, the Aussie remains out of favour to many analysts, including Nomura. But, here is what they had to say overnight: 

Maybe the FOMC don't 'have' what it takes and AUD/USD will fly again, eventually? - Nomura

AUD/USD levels

AUD/USD: Rallies look set to remain quite shallow

From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the decline came after another failed attempt to break above a daily descendant trend line coming from late March highs. "Intraday, and according to the 4 hours chart, the rally seems overextended, as it has been a straight decline from the daily high of 0.7545, although technical indicators maintain their sharp bearish slopes within the oversold territory, suggesting that further slides are likely."