- AUD/USD refreshes monthly high on upbeat China trade numbers.
- Risk reset, broad US dollar weakness add to the pair’s strength.
- A light economic calendar will keep coronavirus updates in the driver’s seat.
China’s upbeat trade numbers for March help AUD/USD to extend its run-up toward the fresh monthly high of 0.6433, currently up 0.71% to 0.6428, during early Tuesday. The pair previously cheered the broad US dollar weakness, risk reset.
Read: China’s Trade Balance (CNY): Returns to surplus in March, imports pop while exports drop
China’s March month Trade Balance rose to 130B from -42.59B prior, in Chinese Yuan terms whereas Exports rose from -15.9% to -3.5% with Imports reversing the previous -2.4% loss with +2.4%.
Earlier during the day, the pair paid a little heed to the March month Business Confidence and Business Conditions from the National Australia Bank (NAB).
The reason could be traced from the broad US dollar weakness amid the surge in the coronavirus cases, making the global hotspot.
Also contributing to the pair’s strength could be the latest risk-reset, which can be observed from the Asian stocks and the US 10-year Treasury yields.
Moving on, a lack of major data could keep virus updates in focus while any further efforts from the US/Australian policymakers could offer additional strength to the quote.
Technical analysis
The pair needs to provide a clear break above 50-day SMA level of 0.6375 to aim for February month low near 0.6425, until then chances of its pullback to the monthly rising trend line near 0.6235 can’t be ruled out.
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