AUD/USD is attempting gains above 100-day EMA after China trade data release

• AUD/USD is mildy bid above the 100-day EMA, having added 10 pips after China trade data release.
• The AUD’s 4 percent recovery rally may fall apart if trade tensions between the US and China escalate.

The AUD/USD jumped 10 pips to a session high of 0.7280 after China data showed the trade surplus widened to CNY 233.63 billion in October from the previous month’s print of CNY 213.23 billion.

The CNY-denominated exports rose 20.1 percent year-on-year, bettering the estimate of 12 percent. Meanwhile, imports surged 26.3 percent, beating the estimate of 14 percent.

In US dollar terms, the trade surplus widened to $34.01 billion from $31.70 billion, but narrowly missed the forecasted figure of $35.00 billion.

The sharp rise in exports may have put a bid under the Aussie dollar. However, a convincing break above 0.73 may remain elusive if the details reveal a drop in the imports of iron ore and copper and a surge in China’s surplus with the US.

AUD/USD Technical Levels