AUD/USD clings to upbeat Chinese data-led gains, closer to 1-week tops

   •  Stronger Chinese trade surplus data helps regain positive traction.
   •  US-China trade optimism/modest USD pull-back remains supportive.
   •  Traders now eye US economic docket for short-term opportunities.

The AUD/USD pair caught some fresh bids on Thursday and is now headed back towards the overnight swing highs, or one-week tops. 

The US Dollar regained positive traction on Wednesday in wake of slightly better than expected US inflation data, showing that the core CPI was up for the third straight month, and prompted some fresh selling around the major.

The pair settled near the lower end of its daily trading range, albeit managed to find decent support on Thursday amid US-China trade optimism and better than expected Chinese trade balance figures.

Data released today showed that China's trade surplus widened to CNY 271.2 billion in January, led by 13.9% y/y jump in exports and 1.9% fall in imports, signalling improving global demand and weakening domestic consumption.

Nevertheless, the data provided a lift to the China-proxy Australian Dollar, which coupled with a modest pullback in the greenback remained supportive of the pair's goodish intraday up-move of around 40-pips.

Moving ahead, today's US economic docket, highlighting the release of monthly retail sales data and PPI print, will now be looked upon for some fresh impetus later during the early North-American session.

Technical levels to watch

Any subsequent up-move is likely to confront some fresh supply near the 0.7145-50 region, above which the pair is likely to aim towards testing the 0.7180 intermediate hurdle en-route the 0.7200 handle. On the flip side, sustained weakness below the 0.7100 handle might negate any near-term positive bias and accelerate the fall back towards weekly lows, around the 0.7060-50 region.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

EUR/USD slides on USD strength, weak German data

EUR/USD is trading below 1.1350. The German IFO Business Climate slightly missed expectations with 98.5 points. The USD is gaining ground despite progress in US-Chinese talks.


GBP/USD recaptures 1.3000 amid Brexit uncertainty, dollar swings

GBP/USD is trading above 1.3000 once again, as the USD loses ground now. Reports about a potential extension of Brexit are circulating but no progress has been made. Trump meets China's Vice PM Liu later.