The Aussie dollar moves lower in early trade after failing to close above .9500. A series of poorer than expected economic data has weakened price action. According to Australia’s statistics bureau, the trade deficit grew to $1.9 billion AUD in May, nearly 10 times more than what economists expected. Iron ore prices, the nation’s largest export, fell a whopping 30 percent in the first two quarters.
Price action rallied from support near .9465/70 over the last couple trading sessions and attempted to test .9500 through yesterday’s risk-on rally. The Australian dollar had been given support as the Reserve Bank of Australia (RBA) decided to leave its benchmark rate at 2.50 percent. However, the daily candle was unable to do so, closing at .9496. Subsequently, following poor economic data, AUDUSD retraced to support at .9450. Deeper price action support will be found at .9412, while the weakly supported US dollar could offer support at these levels for a retest of .9500.
A close above this key level could trigger a move up to .9530 and .9547.