Upbeat China trade data fails to lift AUD/USD

China trade surplus came in at $41.6 billion in June.
Strong data has failed to put a bid under the Aussie dollar (a proxy for China).

Omkar Godbole FXStreet Contributor

The AUD/USD is not getting any lift from the solid China trade data release.

At press time, the currency pair is trading at 0.7418, having hit a low of 0.7399 earlier today.

China USD-denominated exports rose 11.3 percent year-on-year, beating the Reuters forecast of a 10 percent rise.

Meanwhile, imports spiked 14.1 percent year-on-year but missed the forecast of a 20.8 percent rise. Consequently, China registered a trade surplus of $41.61 billion in June, beating the estimate of $27.61 billion by a big margin.

Moreover, the rise in China's trade surplus, especially its surplus with the US, could only lead to a further escalation of a trade war between the two biggest economies of the world. This could be the reason for Aussie's lackluster response.

While the Aussie dollar has not done much so far, it could pick up a bid during the day ahead if the corrective rally in China's Yuan gathers pace.

AUD/USD Technical Levels

Resistance: 0.7444 (June 22 high), 0.7474 (falling 100-day moving average), 0.7484 (July 9 high)

Support: 0.7397 (50-day moving average), 0.7360 (July 11 low), 0.7310 (July 2 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H		Neutral	Low
4H	Strongly Bearish	Neutral	Expanding
1D	Bullish	Neutral	Shrinking
1W	Bearish	Neutral	Low
Updated Jul 13, 03:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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