- China trade balance posted soft figures.
- Buyers still hold post-RBA bullish bias but US-China tension can weight the momentum.
AUD/USD seesaws near 0.7020 after April month China’s trade balance data flashed mixed results on early Wednesday.
The headline trade balance softened to $13.84 billion versus $35.00 billion forecast and $32.67 billion prior whereas exports shrank -2.7% against +2.3% consensus and 14.2% earlier. Further, imports rose 4.0% compared to -3.6% expectations and -7.6% forecast.
While yesterday’s no rate cut from the Reserve Bank of Australia (RBA) has already propelled the quote, today’s trade balance figures are of less importance to the Aussie bulls.
However, present pessimism surrounding the US-China trade talks could become a hindrance for the pair’s upside.
Technical Analysis
The pair has 0.6980 and 0.6960 as nearby supports that might lead it down to 0.6920 and January 2016 bottom near 0.6820.
Alternatively, pair’s sustained break out of three-week-old trend-line resistance (now support) indicates it’s run-up to April highs near 0.7070 and 100-day simple moving average (SMA) level of 0.7110. Also, during the quote’s extended rise past-0.7110, 200-day SMA at 0.7170 could please buyers.
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