COZfx: AUD/USD lowers after trade balance data

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COZforex: The Australian dollar traded lower against its US rival during Thursday’s Asian session following the release of trade balance data down under.

In Asian trading Thursday, AUD/USD dropped 0.10% to 0.9166. Coz forex senior derivatives trader Daniel • Moloney said, AUD/USD is predicted to find support at 0.9105, and a drop through could take it to the next support line of 0.9044. Meanwhile, the pair is predicted to find its first resistance at 0.9209, and a rise through could take it to the next resistance line of 0.9252.

In a report, the Australian Bureau of Statistics said that Australia’s trade balance declined to AUD-770 million last month from AUD240 million in July. The July reading was revised lower from AUD600 million. Analysts expected an August reading of AUD50 million.

The trade balance data comes a day after official data showed that Australia's gross domestic product expanded by 0.6% in the second quarter, in line with expectations, following a downwardly revised 0.5% expansion in the 3 months to March.

The greenback was supported somewhat after the Federal Reserve’s Beige Book report released amid Wednesday’s US session showed a moderate and improving pace of economic growth across all 12 Fed regions.

In other US economic news, the US Commerce Department reported that the US trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports.

Elsewhere, MacNeill Curry, head of foreign-exchange and interest-rates technical strategy at Bank of America Merrill Lynch said the Aussie may rise to 94.07 US cents, according to Bloomberg. However, Currry warned that AUD/USD could drop as low as 80.66 after completing what is known as an inverse head and shoulders pattern.

(COZ forex UK)