- AUD/USD extends recovery gains despite downbeat Australian trade numbers.
- Upbeat comments from US President Trump superseded the Aussie AiG Performance of Services Index.
- RBA is widely anticipated to stand pat, monetary policy statement will be the key.
Downbeat Aussie trade numbers fail to disappoint the AUD/USD pair buyers as the quote registers 0.40% gains to 0.6115 after the data release during the Asian session on Tuesday.
February month Australian trade numbers suggest an overall decline in Trade Balance to 4,61M versus 5,210M prior. Details suggest the Exports and Imports have declined -4.0% and -5.0% respectively against -3.0% priors for each.
Read: Australian Trade Balance, Feb: A$ +4,361 mln, s/adj (Reuters poll: A$+3,650 mln)
Early in Asia, US President Donald Trump showed readiness to avail ships for the coronavirus patients of New York and New Jersey while citing fears of “a big surge of the virus” during this Task Force Briefings. Also supporting the risk could be US President Trump's readiness to announce another aid package.
While the initial statements questioned the market’s previous risk-tone, the following comments asking help from China and signaling the dragon nation’s increase in US agricultural products seem to have favored the trade sentiment afterward.
As a result, the US 10-year treasury yields remain positive near 0.685% whereas most Asian equities and the US stock futures mark gains by the press time.
On the data front, Australia’s AiG Performance of Services Index slipped below the previous 47 to 38.7.
Moving on, the Aussie traders will keep eyes on the RBA, up for a decision at 04:30 GMT, for fresh impulse. Even if the Reserve Bank of Australia (RBA) isn’t expected to alter the present monetary policy, the tone of the RBA Rate Statement will be the key.
Technical analysis
A sustained break of monthly trend line resistance, currently at 0.6100, becomes necessary for the bulls to aim for March-end top close to 0.6215. On the downside, 21-day SMA near 0.6070 limits immediate declines.
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