AUD/USD: Bulls losing momentum on poor China trade
|The Australian traders appear to digest the latest softer-than expected Chinese trade figures, sending AUD/USD lower from daily tops from above 0.75 handle.
AUD/USD back around 200-DMA
Currently, the AUD/USD pair trades +0.20% higher at 0.7497, reversing back below 200-DMA located at 0.7499. A renewed uptick seen in the Aussie lost legs after the Chinese trade data came in below estimates, showing that the country’s imports declined sharply last month, re-enforcing internal demand concerns from Australia’s biggest export destination.
China's trade balance for December, in yuan terms, arrived at 3.35bn CNY vs 344.5bn expected and 298bn last. Exports dropped -2% y/y vs -3.5% expected and 0.1% last, while imports stood at +0.6% y/y vs +2.7% expected and 6.7% previous.
Moreover, subdued commodities’ prices also fail to provide any impetus to the resource-linked AUD. Focus now shifts towards the US macro updates, with the retail sales, PPI and consumer sentiment data to hog the limelight. Besides, Fedspeaks will be also closely eyed.
The pair finds the immediate resistance at 0.7526 (multi-week high) above which gains could be extended to the next hurdle located 0.7550 (psychological levels) and 0.7600 (round figure). On the flip side, the immediate support located 0.7476 (daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7429 (5-DMA) and below that 0.7433 (daily S1).
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