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  • AUD/USD pays a little heed to China trade data amid a lacklustre day.
  • China Trade Balance +$75.4B, Exports up but Imports eased in November.
  • Markets remain lackluster amid mixed clues, light calendar.
  • US-China tussle intensifies with chatters of Trump administration readying new sanctions for CCP officials.

AUD/USD holds lower ground near 0.7430 during the early Monday’s trading. In doing so, the aussie pair ignores recently positive China trade data for November amid a sluggish session with mixed risk catalysts.

China’s headline Trade Balance (in USD terms) for November grew past- the $53.5B forecast and $58.44B previous readouts to $75.42 billion. However, details suggest that the Exports have grown from 12% expected to 21.1% YoY but the Imports eased to 4.5% versus 6.1%. Hence, receding imports from China indicating upcoming trade wars and the dim positive impact of welcome trade balance figures. This could give another reason for the Trump administration to announce further sanctions on the Chinese products. Early in Asia, Reuters came out with the new indicating that the US is preparing new sanctions on at least a dozen Chinese officials over Beijing’s move to disqualify elected legislators in Hong Kong.

Read: China’s Exports rose 21.1% in November

Earlier in the day, Australia’s ANZ Job Advertisements grew past-11.9% (upwardly revised prior) to 13.9% in November.

Elsewhere, the US policymakers continue to jostle over the much-awaited stimulus package even after witnessing a worrisome reduction in the American employment data for November, published on Friday. It should also be noted that the Brexit jitters are extra negatives for the market sentiment.

On the positive side, covid vaccine hopes are keeping the bulls happy as Russia announced the start of distributing the cure to the pandemic while the US and the UK are in the pipeline. Further, the upbeat price of Iron Ore, Australia’s largest export, also favors the AUD/USD pair.

Against this backdrop, stocks in Asia-Pacific trade mixed with the S&P 500 Futures down 0.25% by press time.

Having witnessed the initial reaction, actually no reaction, of China data, AUD/USD traders will keep their eyes on the risk catalysts amid a light calendar for fresh impulse.

Technical analysis

Friday’s bearish hammer suggests further consolidation of gains, which in turn highlights August’s top near 0.7415, followed by the 0.7400 round-figure, as the immediate key supports. Meanwhile, July 2018 top surrounding 0.7485 stays on the bull’s radars.