AUD/USD clocks fresh session high on upbeat Aussie trade data

• AUD/USD prints session highs above 0.6790 as Australian trade surplus bettered estimates.
• Exports growth slowed in June and that could cap upside in the AUD ahead of the RBA's rate decision.

The already bid AUD/USD extended gains to hit fresh session highs above 0.6790 after Australia reported a better-than-expected international trade data at 01:30 GMT.

Australian trade balance widened to A$ 8,036 million in June from May's surplus of A$ 5,745 million. The June figure also bettered estimate of A$ 6,000 million by a big margin.

The above-forecast headline figure pushed AUD/USD to 0.6792. As of writing, the currency pair is trading at 0.6784.

The rise seems to have stalled, courtesy of the slowdown in the export growth. The outbound shipments rose 1% in June, having risen by 4% in May. Meanwhile, imports tanked 4% following a 1% rise in June.

Put simply, the uptick in the trade surplus was largely due to the slide in imports, which could be considered a sign of anemic domestic demand.

Even so, the AUD may find acceptance above 0.68 later today if the Reserve Bank of Australia keeps rates unchanged and sounds less dovish-than-expected.

The central bank's rate decision is due at 04:30 GMT. The RBA has cut rates by 25 basis points in June and July.

Pivot levels