AUD / USD declines below the 50 and 0.7600 DMA

• AUD / USD has fallen below its DMA of 50 and the psychological level of 0.7600.
• However, the Aussie is holding up well amid strong equity markets as the focus shifts to Friday’s NFP figures.

The AUD/USD It has been on the defensive in recent trading this Thursday, falling below its 50-day moving average at the important psychological level of 0.7600. More than anything, the losses are the result of the continued strength of the US dollar and currently the AUD / USD is trading at a loss of around 0.3% or just over 20 pips on the day.

Like most of the rest of its non-US dollar counterparts (except for the British pound, which is at the top of the G10 currency performance chart on Thursday after a less dovish-than-anticipated Bank of England rate decision ), the Australian dollar has succumbed to the gains of the US dollar. But the AUD is performing well and currently ranks third in the G10 rankings. Global equity markets have been firmly in the lead for the fourth day in a row (the S&P 500 was up 0.7% and the Stoxx 600 closed 0.6% higher), providing respite for the risk-sensitive Aussie.

Meanwhile, Australian trade figures for December were released during the Asia Pacific session on Thursday and showed a decent improvement; Exports grew at a healthy 3% monthly pace (same as in November), while imports experienced a median reversal from November’s massive 10% monthly growth rate to 2% MoM. That meant the country’s trade surplus rose to AUD 6,785B from just above AUD 5B in November. ANZ notes that “goods facing import restrictions in China, such as coal, are holding up quite well, with evidence suggesting that Australia has found alternative buyers,” a positive sign for the AUD.

Technical Levels