- 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.
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.
Recommended content
Editors’ Picks
EUR/USD stays below 0.9800 after US inflation data
EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.
GBP/USD rebounds from daily lows, reclaims 1.1100
GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.
Gold extends daily rally beyond $1,670
Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally.
Shiba Eternity download day the biggest bullish catalyst in SHIB history?
Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price.
SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink
Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.