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AUD/USD weak ahead of RBA, posts fresh five-day lows at 0.7570

FX:AUDUSD   Australian Dollar / U.S. Dollar
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Dismal Australia trade data along with widespread risk aversion weighing heavily on the high-yielding Aussie.

Bears tightened their grip pushing AUD/USD to fresh five-day lows at 0.7570.

Australia's trade deficit expanded from $3.16 billion in January to $3.41 billion in February, against expectations of a $2.44 billion gap.

Asian indices trade weaker, Japan’s Nikkei is down -2.12%, Australia’s ASX 200 slides -1.32% and the Chinese benchmark, the Shanghai Composite index drops -0.30%.

Immediate focus remains on the RBA cash rate decision, markets expecting no change to policy, although some jawboning on the AUD levels, given the recent appreciation, cannot be ruled out.

Pair also to be influenced by US services PMI and JOLTS jobs openings data due later today. Major focus will remain on FOMC minutes due tomorrow for fresh cues on the US interest rates outlook.

Technical outlook for the pair remains majorly bearish , with strong trendline support at 0.7555. Breaks below could see test of 0.7510 and then 0.7480 levels.

Our previous call (link below) has hit target 1 and is approaching target 2.

Recommend lowering trailing stop to 0.76, target 0.7510/ 0.7480 ob breaks below 0.7555

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