AUD/USD hit a six-week low of 0.7924 as Aussie exports dropped 1%

The AUD/USD pair hit a 6-week low of 0.7924 after the data released in Australia showed the trade surplus narrowed more than expected in June, largely on account of a 1% drop in the exports.

The trade surplus came-in at AUD 856 million vs. expected print of AUD 1800 million. The previous month’s figure was revised lower to AUD 2024 million from AUD 2471 million. Imports rose 2% m/m, while the exports dropped 1% m/m.

China July Caixin services PMI came-in at 51.5, missing the estimate of 51.9. The weak data could weigh over AUD, which is largely seen as a proxy for China. 

Aussie 10-yr yield hits one-month low

The benchmark 10-yr yield fell to 2.662%; its lowest level since July 7. Meanwhile, its US counterpart trades flat lined around 2.26%.

AUD/USD Technical Levels

A break below 0.7892 [23.6% Fib R of 0.7328-0.8066] would open up downside towards 0.7787 [support on the 4-hour chart] and 0.7749 [4-hour 200-MA] levels. On the higher side, breach of resistance at 0.7963 [1-hour 200-MA] could yield a revisit to 0.80 [zero levels] and 0.8043 [Aug 1 high].