AUD/USD recovers from Wednesday's tumbles to end the day flat
- Market sentiment and middling Aussie data are capping any AUD gains.
- Aussie trade balance figures dropping at 00:30 GMT.
The AUD/USD is trying to hold on near Wednesday's highs, but a soft decline might be on the cards heading into the overnight session and the pair is currently trading just below 0.7820.
The Aussie managed to recover some ground after falling in Wednesday trading, with a miss for Australian GDP figures, trade war fears weighing down market sentiment, and a dovish showing from the Reserve Bank of Australia's (RBA) governor Philip Lowe are all playing their part to keep the AUD weighed down and fighting to stay afloat.
After a swing upwards on the back of restored market sentiment to end Wednesday, the AUD/USD is back where it started. Gary Cohn's resignation as Donald Trump's top economic advisor has markets worrying that Trump's tariffs may get off the ground after all, and the news that trade-protectionist Peter Navarro is not being considered to replace Cohn gave risk appetite a reprieve.
The Aussie will be seeing January's Trade Balance figures at 00:30 GMT Thursday, and the Australian currency could use some good news. Market forecasts are anticipating a swing in the trade balance indicator from -A$1.35 billion to an A$300 million surplus. Aussie bulls will be hoping for the actual numbers to come out higher than forecast, but a 300M printing would still be a welcome recovery for Australia's trade balance.
AUD/USD Technicals
The pair is still drifting into the 200-day SMA, with the 34 EMA squeezing price action into the major indicator, highlighting the pair's lack of sustainable movement in either direction. The H4 candles still show the AUD/USD making lower lows as it continues to decline from late January's high of 0.8136, though the decline has failed to capture much ground below support from 0.7760. Intraday support is coming from 0.7785 and 0.7755, with resistance sitting at 0.7840 and 0.7865.