• The Australian dollar has losses after issuing lower than expected commercial balance data.
• Australian trade surplus dropped to 5 085 MW December, below the expected 7,000 decrease from 6,792 m earlier.
• The American Dollar faced the challenges when ISM PMI services softened in January.

Australian dollar curds (AUD) lower in relation to the American dollar (USD) after lower than expected trade balance published on Thursday. In addition, the Aud/USD pair receives inheritance pressure from risk moods due to the growing fears of US-China trading tensions.

In December, the Australian trade surplus dropped to 5 085 m, the expected 7,000 decrease from the previous surplus 6,792 million. Exports increased by 1.1% MOM, slowing down from 4.2% of November, while the import increased by 5.9% Mom, compared to 1.4% in the previous month.

Traders carefully observe the ongoing trade war between the United States (USA) and China, a key trading partner in Australia. China took revenge with the recent 10% US tariff, which entered on Tuesday. However, Trump stated on Monday afternoon that he would probably talk to China in the next 24 hours. He also warned: “If we cannot achieve a contract with China, the tariffs will be very, very significant.”

Australian dollar is given pressure on a decrease in US-China trade tensions

• The American dollar indicator (DXY), which measures the value of the American dollar in relation to the six main currencies, remains below stagnation near 107.50 at the time of writing. The manager of the American service manager (PMI) could charge Greenback.
• ISM USA PMI services softened 52.8 in January with 54.0 (changed from 54.1) in December. This reading was below the market consensus of 54.3.
• Traders are preparing for the American non -Farmy data (NFP), which is to shape the direction of the Federal Reserve (FED) monetary policy.
• President Trump agreed to a 30-day suspension of the proposed 25% tariffs for Canadian and Mexican imports. This decision appears after the Canadian Prime Minister Justin Trudeau and the president of Mexico Claudia Sheinbaum have undertaken to enhance boundary security measures to solve problems related to illegal immigration and drug trafficking.
• The Chinese Ministry of Trade announced that it will apply a 15% tariff to the import of American coal and liquefied natural gas (LNG), along with an additional 10% oil tariff, agricultural equipment and some cars. In addition, to “protect the interests of national security”, China implement export controls on tungsten, tellurus, ruten, molybdenum and related products.
• According to the Financial Times, Chinese exporters intensify their efforts to produce offshore in response to the Trump tariffs. Manufacturers in China accelerate plans to transfer production to other countries, including the Middle East, to avoid US tariffs. Other tactics considered include the transfer of increased US consumers and an alternative markets to study.
• In December, job offers fell to 7.6 million, apart from 8 million consensus estimates. The US labor market remains stable, and total separation has not much changed to 5.3 million in December.
• Mary Daly, the president of the Fed Fed Bank, stated on Tuesday that the central bank remains in the attitude of waiting and seeing, emphasizing the impact of economic uncertainty on creating politics. While the economy is doing well and keeps the shoot, uncertainty persists. As a result, Fed has flexibility to accurately assess the data before adjusting the rules.
• The Australian Judo Bank Composite PMI increased to 51.1 in January from 50.2 in December, reflecting a slight enhance in operations in the private sector. Meanwhile, Judo PMI services increased to 51.2 of 50.8, which means the twelfth month of expansion in the service sector. Although the height was moderate, it was the strongest than August.

The Australian dollar goes back from 0.6300, support appears on a nine -day EMA

The Aud/USD pair trads on Thursday near 0.6280. A eternal price action over nine and 14-day medium-medium-medium interpretation (EMA) on the daily table indicates a stronger short-term stubborn rush. In addition, the 14-day relative strength indicator (RSI) is above level 50, which is confirmed by a stronger stubborn trend.

On the other hand, the Aud/USD pair could examine the area around a seven -week level of 0.6330, which was registered on January 24.

The Aud/USD pair can find immediate support on a nine-day EMA near 0.6254, and then an EMA 14-day EMA at 0.6249. The break below these EMA may weaken the stubborn prejudice, potentially leading the pair in the direction of 0.6087, the lowest level from April 2020, which was recorded on February 3.

Aud/USD: Daily Chart