AUD/USD seesaws around 0.6780 after China trade data
|- AUD/USD traders struggle to justify the increase in trade surplus amid a big drop in imports.
- The US-China trade developments seem the key as the US markets are off today.
In a reaction to mixed trade data from China, the AUD/USD pair takes the rounds to 0.6780 on early Monday.
China’s trade numbers in the Chinese Yuan (CNY) terms showed that Trade Surplus expanded to CNY 280 billion in September from 239.6 billion flashed in August. Further details on the same format mention Exports declining -0.7% versus +2.6% prior while Imports plunging -6.2% against -2.6% earlier.
Read: China's Trade Surplus widened in September on big drop in Imports
On the US Dollar (USD) denominated terms, the headline Trade Balance figures rose to $39.65 billion versus $33.30 billion forecasts while Imports and Exports follow the suit of CNY numbers. Imports plummet 8.5% YoY against -5.2% expected whereas Exports lag behind -3.0% market consensus to -3.2% on the year-on-year basis.
The Aussie traders fail to get a clear view of the Chinese trade situation while the overall sentiment remains upbeat considering the US-China trade deal.
The latest developments surrounding the trade deal signal a tough road ahead for the US-China trade negotiators as no actual agreements have been signed that could have reversed the actions undertaken during the trade war.
It should also be noted that China’s recent rejection of the United States (US) diplomat’s visa might turn the Trump administration against the dragon nation during the second round of talks.
Investors may now await fresh clues concerning the trade deal after stage one is cleared.
Technical Analysis
Failure to rise above 50-day Exponential Moving Average (EMA), at 0.6800 now, highlights the importance of 0.6770, 0.6730 and 0.6700 supports.
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