The Australian Dollar (AUD) inched higher against the US Dollar (USD), increasing the price of AUDUSD to more than 0.7300 following the release of Australia’s trade balance news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7319. A hurdle can be seen near 0.7332, the horizontal resistance area ahead of 0.7456, another critical resistance area and then 0.7500, the psychological number. The technical bias shall remain bearish as long the 0.7498 resistance area is intact.

On the downside, a support can be seen around 0.7300, the psychological number ahead of 0.7159, the swing low of the last major downside move as demonstrated in the given below daily chart. A break and daily closing below the 0.7159 shall incite renewed selling interest, validating a move towards the 0.7000 support area.

Australia’s Trade Balance

Australia’s trade balance jumped back in the black in November, logging the first surplus seen since March 2014.

According to the ABS, a surplus of $1.243 billion was reported in seasonally adjusted terms, well above the $500 million deficit that had been expected by economists.

It was the largest surplus recorded since February 2014, and followed a run of 31 consecutive monthly deficit.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.