- AUD/USD spiked above the 0.73 handle, reversing losses, extending the rally into the third day.
- Upbeat domestic trade data along rising Asian equities offered support to the major.
- Data released earlier showed that Australian trade deficit shrank to 2.94b in Jan beating expectation for -3.22b. Exports rose 266m (1%) to 2.56b, while the imports fell 320m (1%) to 2.85b.
- Weak Chinese Caixin services PMI report failed to weaken the bulls, AUD/USD spike past 0.73 handle to hit new highs of 2016 at 0.7321.
- Australia retail sales and US NFP data due Friday are the next najor data which could impact the pair.
- We had advised a long call on the pair (http://www.econotimes.com/FxWirePro-AUD-USD-takes-out-072-handle-after-upbeat-Australia-GDP-data-break-above-07250-could-see-further-upside-171062). Target 1 achieved, book partial profits.
Recommendation: Hold for further downside
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