The Australian Dollar (AUD) inched higher after the Australian Bureau of Statistics releases somewhat favorable news for the Australian dollar. The data tells that the trade balance improved during June and stayed around 8036 M, as it was 7163, the month before. The economists also indicated an uprise in the said data by giving a value of 6000 M.

It is to be noted that the trade balance represents the difference between import and export levels of the country. Both imports and exports levels stayed in coherence followed by a reasonable domestic demand in terms of imports and an unchanged or improved demand in exchange for exports of the country. So, the pair is believed to start moving positively.

The Australian Bureau of Statistics released recent stats concerning home loans. This month, the stats are not favorable for the Australian Dollar.  It provides an idea about the prevailing trend of the housing market in Australia and shows consumer confidence as large house borrowings are done. It is to be noted that a high reading is considered as positive for the AUD, while a low reading alarm for a bearish market.

The paid started recovering against the New Zeland dollar since last week, which can be seen in the graph below. It is quite anticipated that the pair will keep moving upward following a bullish trend as it printed a higher high during its last upside move.

Conclusion

Trading AUDUSD may not be a better idea for a short term position. However, it may get a reversal around 0.6851 and start recovering again. If this happens, trading pair for a long term position would give positive results.