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AUD/USD jumps to tests 0.7050 as China trade positively surprises

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The AUD/USD pair saw a 30-pips knee-jerk rally towards 0.7050 levels, extending its recovery on 0.70 handle, after the Chinese trade data brought fresh signs of life into markets.

    AUD/USD outperforms the commodities-currencies bloc

    Currently, the AUD/USD pair rises 0.77% at 0.7043, having printed fresh three-day highs at 0.7049 last minutes. The Aussie’s recovery found fresh legs from the upbeat China’s trade data and somewhat calmed the Chinese external demand concerns, which improved risk-sentiment and bolstered the AUD bulls.

    China Dec trade
    surprised markets to the upside and posted a surplus of 382.05 bn yuan vs 338.8bn expected. The exports YoY rose +2.3% vs -4.1% expected and as compared -3.7% previous, while imports YoY saw -4% vs -7.9% expected and -5.6% last.

    Moreover, the rebound in the Asian stocks after the reported Chinese intervention to stabilize the yuan, and the resultant risk-in trades lifted the Aussie beyond the hourly 100-SMA at 0.7002. Japan’s Nikkei jumps +2.40%, while the Chinese benchmark, the Shanghai Composite index rallies 0.71%

    Attention now shifts towards another set of China data and Australian jobs report due for release tomorrow, as the trading calendar for AUD remains quiet today.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.7061/69 (10-DMA/ daily R2) above which gains could be extended to the next hurdle located at 0.7101 (1h 200-SMA). On the flip side, the immediate support located at 0.7002 (1h 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6978 (5-DMA/ daily low).
    For more information, read our latest forex news.
     

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