Tables are turning and the pullback of AUD is round the corner. It is evident that there is a risk of a slight fall in price of AUD. The most contributing factor in this regard is the trade balance report of its greatest trade partner (China). AUD is obviously going to be fazed by this trade surplus of China. The overflowing stream of trade of Chinese economy is about to put off the worth of AUD. It seems that the greatest disadvantage of trading the currencies in pairs is about to hit AUD really hard. The pullback of AUD is bound to happen.
A short-term pullback of AUD:
However all is not lost. The tunnel of fall seems short-term for AUD. As AUD has been enjoying a prolonged duration of stability against USD, therefore the long-term scenario is not dark and gloomy for Aussie traders. You can say that there is a just a bump in the smooth flow of trade for AUD. The robust positive aspects of the economic growth of China has imposed this bump. The momentous increase of 21% in the exports of China exposes the constant growth of Chinese economy. December 2020 marks in the world Calendar as consecutive six month escalation period for China.
The weakness of US Dollar:
The weakness of USD is also going to affect AUD. But this change is going to be a positive one. The fall of USD will strengthen AUD. It will prove a lucky hit for AUD. The indicators of AUD/USD are storming towards the greatest annual value of 2020. At best this pullback of AUD will only reflect the monthly lower value of AUD. Thus a short-term pullback is in offing. AUD/USD is in overbought state. AUD is enjoying an uptrend against USD which is the greatest hope for Aussie traders.