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