AUD/USD re-tests trend line hurdle as Australia logs record trade surplus

The bid tone around the Aussie dollar strengthened, pushing the AUD/USD pair higher to 0.7614 (resistance offered by trend line drawn from Dec 29 low and Mar 29 low) after Australia reported a big beat on the February trade surplus number.

The trade surplus rose to AUD 3.547 billion in February, which is well above the consensus estimate of AUD 1.800 billion. Exports rose 1%, while imports tanked 5%.

This has been the largest trade surplus ever reported, displacing the previous record high of $3.334 billion set in December 2016. The sharp rise in the exports also indicates strength in the Chinese economy. Moreover, Australia suffered recession back in 1991 and it was largely due to trade with China.

AUD/USD Technical Levels

Breakdown of support at 0.7587 would expose 0.7551 (200-DMA) and 0.7515 (100-DMA). On the higher side, breach of resistance at 0.7631 (10-DMA) could yield a revisit to 0.7679 (Mar 30 high) and 0.77 (zero figure).