The AUD/USD remains firm as domestic trade data for October didn't stray too far from expectations. Australia's trade deficit widened to A$2.1 billion in October versus A$2.0 billion expected by the market, with exports flat and imports up 3% on month. The AUD/USD hit a three-month high near 1.0515 overnight as better-than-expected domestic jobs data cast doubt on a February rate cut from the RBA, and options barriers were triggered above 1.0500. Technical support has crept up to 1.0450, and a sustained break above last week's high of 1.0500 could trigger further short covering, potentially generating a test of key resistance from the weekly downtrend line drawn at 1.0570. That line forms the upper boundary of a major symmetrical triangle pattern, a sustained upside break of which could threaten the Sept. 2012 peak at 1.0626, and subsequent resistance levels at 1.0857 and 1.1080. The longer-term target of the triangle pattern target, if 1.1080 gives way, would be 1.2250, according to Dow Jones Newswires technical analysis. The AUD/USD is at 1.0480.
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