• 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

 

 

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