AUD/USD Storms Through 0.7700 on Upbeat Chinese Exports
The bullish momentum around the AUD/USD pair gained further traction after the Chinese trade data showed that exports and imports improved last month.
AUD/USD sees a 30-pips rally post-China data
Currently, the AUD/USD pair rockets 1.57% at fresh nine-month highs of 0.7716, jumping-off solid support at 0.7685, where the hourly 5 & 10-SMA coincide. The AUD bulls received fresh impetus from stronger than expected Chinese trade data, which showed impports picking-up pace in Australia’s biggest export destination, highlighting improved Chinese external demand. China’s exports rose 18.7% y/y (in yuan terms) versus +14.9% y/y expected and prior of -20.6%, while imports slowed its pace of decline.
In addition, the risk-on rally in the Asian equities combined with higher oil prices also collaborated to the upbeat sentiment around the Aussie. Japan’s Nikkei jumps +2.53%, Australia’s ASX rallies +1.25%, while the Shanghai Composite index rebounds +1.32%.
The recent bullish run in the AUD/USD pair was fuelled by a stronger than expected business conditions report from Australia released the day earlier.
National Australia Bank (NAB) Business Confidence jumped to 6 versus 3 previous, while the business conditions numbers for March hit fresh 8-year high, coming in at 12 versus 8 previously in February.
With the Chinese trade data out of the way, all eyes now remain on the US retail sales and PPI data due later in the NY session, while Australia’s jobs data due tomorrow is also expected to hog the limelight.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7721/41 (daily R1/ July high) above which gains could be extended to the next hurdle located at 0.7759 (daily R2/ multi-month highs). On the flip side, the immediate support located at 0.7685/72 (1h 5 & 10-SMA/ daily low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7621/20 (1h 50-SMA/ 5-DMA).