• AUD/USD keeps the early-day weakness despite upbeat trade numbers from Australia’s largest customer.
  • China Trade Balance crossed 264.99N CNY forecast with CNY 442.33B, Exports mark notable increase but Imports linger.
  • Market sentiment follows the pre-NFP trading lull, US stimulus deadlock grabbed the latest attention.

AUD/USD eases to 0.7215, down 0.30% on a day, after China released July month trade data on early Friday. The aussie pair has recently been clubbed between 0.7210 and 0.7220 following its U-turn from an 18-month top amid the initial Asian session.

China’s July month Trade Balance crossed forecast and prior while flashing 442.23B figures on a Chinese Yuan basis. Details suggest that the Exports surge from 2.3% expected and 4.3% previous marks to 10.4% but Imports reversed -0.7% market consensus with 1.6% figures.

Talking about the USD terms, Trade Balance grew $62.33B versus $42B expected while expected rose from -0.2% forecast to +7.2%. Imports, however, dropped below 1% prior to -1.4%.

Read: China’s July Trade data (USD): Surplus expands amid a surprise jump in exports

Other than the mixed data, the market’s cautious mood ahead of the key US employment figure also negatively affects the pair’s trading performance. The early-indicators of the key Nonfarm Payrolls, expected 1600K versus 4800K prior, suggest a disappointment likely brewing, which in turn makes the USD traders worried even as the greenback seesaws around a two-year low.

Read: Nonfarm Payrolls Preview: Hints point to an awful July

Elsewhere, the US lawmakers’ failure to deliver the much-awaited coronavirus (COVID-19) phase 4 package also weighs on the market sentiment. Further, the US-Canada tussle over aluminum tariffs and the Sino-American tussle, with TikTok in the spotlight recently, exert additional downside pressure on the pair.

Against this backdrop, the S&P 500 Futures drop 0.37% whereas stocks in Asia-Pacific also mark mild losses by the press time.

Looking forward, traders will have to keep eyes on the US employment figures, as well as stimulus news, for fresh impetus.

Technical analysis

Unless breaking an ascending trend line from May 22, coupled with 21-day EMA, near 0.7110-0.7100, the bears are less likely to take controls. As a result, bulls targeting the year 2019 top near 0.7300 should remain hopeful.

Additional important levels

Overview
Today last price 0.7215
Today Daily Change -20 pips
Today Daily Change % -0.28%
Today daily open 0.7235
 
Trends
Daily SMA20 0.7093
Daily SMA50 0.698
Daily SMA100 0.6661
Daily SMA200 0.6704
 
Levels
Previous Daily High 0.724
Previous Daily Low 0.7174
Previous Weekly High 0.7228
Previous Weekly Low 0.7087
Previous Monthly High 0.7228
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.7215
Daily Fibonacci 61.8% 0.7199
Daily Pivot Point S1 0.7192
Daily Pivot Point S2 0.715
Daily Pivot Point S3 0.7126
Daily Pivot Point R1 0.7259
Daily Pivot Point R2 0.7283
Daily Pivot Point R3 0.7325

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD came under strong bearish pressure and declined below 1.0850 as the US Dollar gathered strength on the impressive January jobs report. With Wall Street's main indexes rebounding from daily lows, however, the pair seems to have found support.

EUR/USD News

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD turned south and fell toward 1.2100 after the data from the US revealed that Nonfarm Payrolls increased by 517,000 in January. Although the US Dollar Index retreated modestly in the late American session, the pair remains on track to close the week deep in the red.

GBP/USD News

Gold extends slide to fresh mutliweek lows below $1,870

Gold extends slide to fresh mutliweek lows below $1,870

Gold price extended its slide after breaking below $1,900 and touched its lowest level since January 10 below $1,870. With the US January jobs report showing an impressive 517,000 growth in NFP, the benchmark 10-year US Treasury bond yield recovered above 3.5%, weighing heavily on XAU/USD.

Gold News

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The NFP data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

Read more

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon stock fell 5.1% afterhours on Thursday as the premier online retailer missed EPS overall for the quarter ending in December and saw growth in its cloud division drop to 20%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures