AUD: Under pressure from economic data - BBH

News of a sharp deterioration of Australia's trade balance in October and November simply managed to stall the Australian dollar's climb, notes Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“The Aussie was trading near $0.7500 in early December and finished the year near $0.7800.  The gains were extended to almost $0.7870 before the trade report.  Initial support in the $0.7835-$0.7840 area was tested. The RSI has turned down, and the MACDs are poised to do so in the coming days. The MACD needs more work. A break of $.07760-$0.7780 is needed to boost confidence a top is in place. Note too that the Australian two-year yield is set to fall back below the US two-year rate (as was the case for most of the first half of December).”