Upbeat China trade numbers fail to lift AUD/USD

China trade surplus expands more than expected.
Still, Aussie dollar remains under pressure.

Omkar Godbole FXStreet Contributor

China reported a sharp rise in the trade surplus in December, however, the positive data has failed to put a bid under the AUD/USD pair.

The currency pair ran peeped above 0.79 earlier today but ran into sellers at 0.7905. As of writing, AUD/USD is trading largely unchanged on the day at 0.7890 levels.

China exports (CNY terms) rose 10.8 percent in December, beating the estimate of 7.4 percent. Meanwhile, imports jumped 18.7 percent vs. forecast of 11.8 percent growth. This resulted in a trade surplus of CNY 287 billion (estimate: CNY 254 billion).

Aussie, despite being considered a proxy for China, has barely moved following the data release. The lackluster reaction could be due to overbought conditions as shown by the daily RSI.

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik details the technical picture as follows-

The short-term technical picture is bullish, as the pair holds above a modestly bullish 20 SMA, while technical indicators have advanced to fresh one-week highs, maintaining their bullish slopes. The immediate resistance is the mentioned October high of 0.7896, with large spots suspected above it that once triggered will only fuel the dominant bullish trend.

Support levels: 0.7830 0.7800 0.7770

Resistance levels: 0.7895 0.7920 0.7945

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bearish	Neutral	Shrinking
4H	Bearish	Overbought	High
1D		Overbought	Shrinking
1W	Bullish	Neutral	Shrinking
Updated Jan 12, 02:15 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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