The Australian Dollar (AUD) halted its three-day ascent following the release of stagnant Final Retail Sales data and disappointing Trade Balance figures from Australia on Friday.
Conversely, the US Dollar (USD) faced downward pressure due to weaker labor market indicators from the United States (US) on Thursday, which lent support to the AUD/USD pair.
Australia's Trade Surplus (Month-over-Month) narrowed to 7,280 million in March, falling below the anticipated 10,400 million and February's figure of 10,058 million, as per data released by the Australian Bureau of Statistics.
Exports from Australia contracted by 2.2% month-over-month, contrasting with the previous increase of 1.6%. Meanwhile, Imports surged by 4.8%, compared to the 1.3% growth seen previously.
The US Dollar Index (DXY) remained under pressure, reflecting the decline in US Treasury yields, possibly influenced by neutral remarks from several Federal Reserve officials.
However, the US Dollar might have attracted investors amid market caution due to escalating geopolitical tensions following Israel’s attack on Iran's embassy in Syria. Traders are awaiting US labor market data, including Average Hourly Earnings and Nonfarm Payrolls, scheduled for release on Friday.
Technical Analysis: The Australian Dollar remains below the psychological barrier of 0.6600
The Australian Dollar is trading around 0.6570 on Friday. Immediate resistance is noted around the 61.8% Fibonacci retracement level of 0.6596, coinciding with the psychological threshold of 0.6600.
A breach above this level could potentially drive the AUD/USD pair towards the vicinity of the major level of 0.6650 and March’s peak of 0.6667. On the downside, significant support levels are identified around the nine-day Exponential Moving Average (EMA) of 0.6552 and the major support level of 0.6550.
Paraphrasing text from "FX Street" all rights reserved by the original author.
