AUD/USD sticks to gains near weekly tops, around 0.70 handle post-Chinese trade data

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  • Renewed USD selling helped the pair to gain traction for the third straight session.
  • Chinese trade balance data did little to provide any boost to the China-proxy Aussie.
  • Traders now eye US PPI and comments by FOMC member Evans for some impetus

The AUD/USD pair held on to its strong gains near weekly tops, with bulls eyeing a follow-through momentum beyond the key 0.70 psychological mark post-Chinese trade balance data.

The pair built on this week’s goodish bounce from 2-1/2 week lows and continued gaining positive traction for the third consecutive session on Friday amid some renewed US Dollar selling pressure. Despite a follow-through pickup in the US Treasury bond yields – supported by Thursday’s US CPI report, the greenback struggled to find buyers and was seen as one of the key factors driving the pair higher.

Meanwhile, Friday’s release of Chinese trade data for the first half of 2019 did little to provide any meaningful impetus, though remained supportive of the bid tone surrounding the China-proxy Australian Dollar. Data released on Friday showed China’s trade surplus stood at ¥1.23 trillion, while exports rose 6.1% and imports at 1.4% year-on-year rate in Yuan terms during the reported period.

In absence of any progress in the US-China trade talks, it remains to be seen if the pair is able to capitalize on the positive momentum or meets with some supply at higher levels as the focus now shifts to the US economic docket – featuring the release of PPI figures for June, which coupled with comments by Chicago Fed President Charles Evans will now be looked upon for some short-term trading opportunities.

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