AUD/USD: 5-DMA hurdle holds as China Exports & Imports miss estimates
|The bullish move in the AUD/USD pair appears to have stalled around the 5-DMA level of 0.7937 after Chinese export growth and import growth number missed estimates.
The trade surplus came-in at CNY 321.2 billion, beating the forecast of CNY 293.55 billion. The previous figure stands unrevised at CNY 294.30 billion. Exports rose 11.2%, missing the estimate of 14.8% and imports jumped 14.7% vs. 22.3% expected.
Aussie dollar, being a proxy for China, is not cheering the wider trade surplus the slower growth in the imports is bad news for the mining economy like Australia.
Nevertheless, the currency pair remains bid around 0.7928, courtesy of the upbeat NAB data released earlier today. The Aussie-US 10-yr bond yield spread has narrowed slightly to 38 basis points from the previous day's 40 basis points.
AUD/USD Technical Levels
A break above 0.7980 [Aug 4 high] would open doors for 0.80 [psychological level] and 0.8043 [Aug 1 high]. On the downside, breach of support at 0.7892 [23.6% Fib R of 0.7328-0.8066] could yield a sell-off to 0.7831 [23.6% Fib R of 2011 high - 2016 low] and 0.78 [zero levels].
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