AUD/USD dips below 200-DMA on narrower Aussie trade surplus

The offered tone around the Aussie gathered pace, pushing the AUD/USD pair below its 200-DMA level of 0.7531 after the Aussie April trade surplus printed weaker-than-expected. 

Exports drop 8%

The details revealed the exports dropped 8% m/m, compared to a 2% growth registered in March. Meanwhile, imports fell 1% m/m. 

Despite the weak data, the yield on the 10-year Aussie government bond is still trading 2.1 basis points higher on the day. Thus, it will be interesting to see if the Aussie bears are able to hold the pair below 200-DMA. 

The focus now shifts to China data. The Aussie dollar may regain the bid tone if the China exports and imports figure better estimates. 

AUD/USD Technical Levels

The spot fell to a session low of 0.7525. A break below 0.75 (zero figure + 5-DMA) would open up downside towards 0.7483 (50-DMA) and 0.7466 (10-DMA). On the higher side, breach of 0.7531 (200-DMA) could yield a re-test of 0.7556 (100-DMA) and 0.7567 (previous day’s high).