Investing.com - The Australian dollar declined against its U.S. counterpart on Wednesday, pulling away from an eight-month high as downbeat Australian trade balance data weighed although sentiment on the greenback remained fragile.
AUD/USD hit 0.9450 during late Asian trade, the session low; the pair subsequently consolidated at 0.9460, shedding 0.38%.
The pair was likely to find support at 0.9388. the low of June 30 and resistance at 0.9542.
Official data showed that Australia's trade deficit widened to A$1.91 billion in May, from A$0.78 billion in April, whose figure was revised down from a previously estimated deficit of A$0.12 billion.
Analysts had expected the trade deficit to narrow to A$0.12 billion in May.
The greenback remained under pressure since U.S. data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.
Investors were also awaiting the U.S. nonfarm payrolls report, due to be released one day early on Thursday ahead of the Independence Day holiday, for further indications on the strength of the economic recovery.
The Aussie was lower against the euro, with EUR/AUD gaining 0.39% to 1.4460.
Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on factory orders.