- AUD is teasing a falling channel breakout on the hourly chart.
- China exports beat estimates by a big margin, imports, however, remained in the negative territory.
- Aussie could rise toward the highs seen yesterday if equities cheer big jump in China’s exports.
An above-forecast China exports figure is boding well for the Aussie dollar.
AUD/USD is now trading just above the falling channel hurdle of 0.7105, having clocked a high of 0.7114 soon before press time.
China’s exports in CNY terms jumped 13.9 percent year-on-year, beating the estimated figure of 3.8 percent by a big margin. That could be considered a sign of improving demand conditions in the global economy.
Imports, however, dropped 1.9 percent as expected, signaling weakening consumption in the world’s second-largest economy.
Even so, the AUD could extend gains if the equity markets cheer the strong exports figure. As of now, the futures on the S&P 500 are flat lined.
Technical Levels
A falling channel breakout would be confirmed if the current hourly candle closes above 0.7105. That would open up upside toward 0.7121 (Feb. 13 high) and 0.7136 (Feb. 12 high). On the downside, support is seen at 0.7100 (50-hour MA) and 0.7085 (previous day’s low).
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