- The Aussie dollar fails to pick up a bid despite the rise in China's copper and iron ore imports.
- China's trade surplus with the US hit a record high in September and that could boost fears of a further escalation of the trade war and hurt the Aussie dollar.
The AUD/USD continues to trade in a sideways manner around 0.7121, having turned a blind eye towards upbeat China data.
China's unwrought copper imports rose to 521,000 tonnes in September - highest since March 2016. Meanwhile, iron ore imports increased 4.2 percent to a four-month high of 93.08 million tonnes in September.
Meanwhile, China's trade surplus to CNY 213.23 billion in September, beating the estimated print of CNY 136.2 billion by a big margin.
Both copper and iron ore are Australia's top exports and rise in the Chinese imports of these commodities is good news for the AUD. Further, a surge in China's trade surplus indicates that the second-largest economy is holding strong despite the rising trade tensions.
Still, the Aussie dollar isn't impressed, possibly because China's trade surplus with the US hit a record high of $34.13 billion in September. That may embolden the Trump administration to impose a fresh round of tariffs on China.
AUD/USD Technical levels
Resistance: 0.7131 (session high), 0.7148 (38.2% Fib R of the recent drop), 0.7202 (Aug. 15 low)
Support: 0.7085 (Sept. 11 low), 0.7041 (Oct. 8 low), 0.70 (psychological level)
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 securities. 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 Forex 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.