AUD/USD beats falling channel hurdle on above-forecast China exports
- The AUD is teasing a falling channel breakout on the hourly chart.
- China's exports beat estimates by a big margin, imports, however, remained in the negative territory.
- Aussie could rise toward the highs seen yesterday if the above-forecast Chinese exports put a bid under the equities.
An above-forecast China exports figure is boding well for the Aussie dollar.
AUD/USD is now trading just above the falling channel hurdle of 0.7105, having clocked a high of 0.7114 soon before press time.
China's trade surplus widened to CNY 271.2 billion in January, as exports jumped 13.9 percent year-on-year, beating the estimated figure of 3.8 percent by a big margin. That could be considered a sign of improving demand conditions in the global economy.
Imports, however, dropped 1.9 percent as expected, signaling weakening consumption in the world's second-largest economy.
Even so, the AUD could extend gains if the equity markets cheer the strong exports figure. As of now, the futures on the S&P 500 are flat lined.
Technical Levels
A falling channel breakout would be confirmed if the current hourly candle closes above 0.7105. That would open up upside toward 0.7121 (Feb. 13 high) and 0.7136 (Feb. 12 high). On the downside, support is seen at 0.7100 (50-hour MA) and 0.7085 (previous day's low).
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Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
