AUD/USD finds offers at 0.7470 on slippage in Chinese imports, DXY recovers
|- AUD/USD has slipped to near 0.7450 as the DXY has recovered on mixed Asian markets.
- Aussie dollar has been offered on slippage in Chinese exports.
- The DXY is continuing its nine-day winning streak on higher US CPI.
The AUD/USD pair has surrendered half of its intraday gains on weak Chinese imports data. In the Asian sessions, the pair is displaying a bullish open rejection-reverse day. The asset opened at around 0.7450 and slipped below the opening price to 0.7442. Later, the major recovered sharply and printed an intraday high at 0.7474 after overstepping the opening price.
The February month Trade surplus of China has been narrowed to 300.58 billion yuan against the previous figure of 738.8 billion yuan. Australia is a leading exporter to China and the major concern for the antipodean is the slippage in China’s imports by 1.7%, while the street was expecting a positive jump of 11.4%.
Meanwhile, the US dollar index (DXY) is recovering after a minor pullback towards 100.23. The DXY is continuing its nine-day winning streak on Wednesday amid adequate odds of a 50 basis points (bps) interest rate hike by the Federal Reserve (Fed). The Fed is expected to announce a jumbo interest rate hike along with a swift balance sheet reduction to reduce the risks of soaring inflation. The 10-year US Treasury yields have rebounded from intraday’s low at 2.72% on mixed Asian markets.
This week Australia’s Unemployment Rate will hold significant importance. Aussie’s jobless rate is likely to land at 3.9% against the previous figure of 4%. On the greenback front, US Retail Sales will be the major catalyst, which is due on Thursday. A preliminary estimate of the monthly US Retail Sales claims a higher print at 0.6% against the prior figure of 0.3%.
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