- Trade surplus of China came in higher than expected.
- US Dollar Index stays in red below 99.20 on Tuesday.
- NAB’s Business Confidence in Australia deteriorated sharply in March.
The AUD/USD pair came in under selling pressure in the early trading hours of the Asian session after the data from Australia showed an unprecedented drop in the Business Confidence Index. However, the upbeat Trade Balance figures from China and the risk-on market atmosphere helped the pair gain traction and renew its monthly high at 0.6432.
Chinese data helps AUD gather strength
Although the pair staged a technical correction and dropped to 0.6375 during the European trading hours, the broad-based USD weakness allowed it to stay in the positive territory. As of writing, the pair was up 0.27% on the day at 0.6397.
Earlier in the day, the data published by the National Australia Bank (NAB) showed that the Business Confidence Index plummeted to -66 in March from -2 and the Business Conditions Index dropped to -21 from 0.
On the other hand, the trade surplus in China widened to $19.9 billion in March to surpass analysts’ estimate of $18 billion. Additionally, exports declined at a softer pace than expected.
Meanwhile, the USD continues to have a difficult time finding demand on Tuesday with the US Dollar Index falling to its lowest level in more than 10 days at 99.14, where it was erasing 0.25% on a daily basis. The improved market sentiment seems to be weighing on the USD as US stock index futures add more than 1%.
Technical levels to watch for
Share
