Australian Trade Balance misses the mark, AUD/USD pops and drops

The trade balance released by the Australian Bureau of Statistics came out missing expectations:

• Australia's August exports +3% Mom vs. the prior -9.9% & imports +4% vs. the prior +5.2%.

AUD/USD is testing into the 0.6520s on US dollar weakness in Asia but finding resistance there:

However, the head and shoulders is a bullish prospect.

About the Trade Balance

This is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.