#AUDUSD @ 0.66903 has slipped below the 0.6700 cushion again on weak China Trade Balance data. (Pivot Orderbook analysis)

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• AUD/USD has slipped below the 0.6700 cushion again on weak China Trade Balance data.
• China’s November Exports and Imports have dropped by 8.7% and 10.6% respectively.
• The risk-off impulse has trimmed marginally as investors are shrugging off US data-inspired pessimism.

The pair currently trades last at 0.66903.

The previous day high was 0.6744 while the previous day low was 0.6681. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

The AUD/USD pair has sensed selling pressure and has dropped below 0.6700 again as China’s National Bureau of Statistics has reported weaker-than-projected Trade Balance data. In US Dollar terms, Exports have dropped by 8.6% vs. the consensus of 3.5% and Imports have tumbled by 10.6% against the projections of 6.0%. China’s Trade Balance has slipped sharply to $69.84B in comparison with the estimates of $78.1B.

Earlier, the AUD/USD pair scrolled above the round-level resistance of 0.6700 after the Australian economy reported weak Gross Domestic Product (GDP) data. The annual GDP data landed at 5.9%, lower than the expectations of 6.3% and the prior release of 3.6%. While quarterly GDP data dropped to 0.6% vs. the projections of 0.7% and the former release of 0.9%.

A slowdown in the Australian economy is expected to cheer the Reserve Bank of Australia (RBA) as it is a sign of a forward decline in inflation. A lower growth rate indicates a decline in economic activities, which forces firms to trim the prices of goods and services.

It is worth noting that the RBA hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.10% on Tuesday. This was the third consecutive 25 bps rate hike by RBA Governor Philip Lowe. The Australian central bank has shifted to smaller rate hike culture to avoid financial risks to the economy.

Meanwhile, the risk-aversion theme has eased marginally as investors are shrugging off United States data-inspired pessimism in the global markets. The US Dollar Index (DXY) has slipped below the immediate support of 105.60. It would be early calling the minor correction in the US Dollar a reversal amid an absence of any potential positive trigger for the risk-sensitive currencies.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6694 at the time of writing. Pair opened at 0.669 and is trading with a change of 0.06 % .

The pair is trading below its 20 Daily moving average @ 0.6697, above its 50 Daily moving average @ 0.6509 , above its 100 Daily moving average @ 0.6685 and below its 200 Daily moving average @ 0.6918

The previous day high was 0.6744 while the previous day low was 0.6681. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6666, 0.6642, 0.6602
• Pivot resistance is noted at 0.6729, 0.6768, 0.6793

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