FXWIREPRO: AUD/USD Weak ahead of RBA, Posts Fresh Five-Day Lows at 0.7570

FXWIREPRO: AUD/USD Weak ahead of RBA, Posts Fresh Five-Day Lows at 0.7570

• 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.  
• US services PMI and JOLTS jobs openings data are due later today. 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 (http://www.econotimes.com/FxWirePro-Aussie-sold-off-on-disappointing-data-good-to-short-AUD-USD-rallies-188530) has hit target 1 and is approaching target 2.
  

Recommendation: Lower trailing stop to 0.76, target 0.7510/ 0.7480 ob breaks below 0.7555 

The material has been provided by InstaForex Company - www.instaforex.com