AUDUSD Breaks Above 0.70 on Record Trade Surplus

AUDUSD managed to break above the 0.70 resistance getting a boost from record trade surplus to $5.7 billion up from $4.8 billion in April. The figure beat analysts’ consensus of $5.25 billion. Exports outpaced imports as grew by 3.5% while the imports increased only by 1%. The strong trade surplus has narrowed the current account deficit at only 0.6% of Aussie GDP in the 1Q of 2019. The Australia Building Permits, Month over Month, came in at 0.7 percent beating analysts’ expectations of 0 percent for May 2019. Earlier this week the Reserve Bank of Australia (RBA), cut interest rates for the third month in a row to a historic low level of 1.0% at its July monetary policy meeting as market expected. It is the first time there have been consecutive interest rate cuts since 2012. Since November 2011 there have been 14 rate cuts with the cash rate cut from 4.75%.

AUDUSD currently is trading close to daily high at 0.7012 in improved momentum after the pair managed to break above the 0.70 resistance. The pair now will face the important resistance at 0.7032 the 100 day moving average and if breached can extend the rebound up 0.71 and the 200 day moving average. On the downside first support stands at 0.6954 the 50 day moving average which tested twice with success, while more bids will emerge at 0.6827 the low from June 18th.Don’t miss a beat! Follow us on Twitter.