A new week and new suffering for the A$. This time, the main driver is not the RBA (like last week, twice) but rather data that comes from the world’s second largest economy and Australia’s No. 1 trade partner, China.
The economic giant report a drop of nearly 11% in imports y/y, more than double the early the expectations. This does not bode well for Australia, which still relies on exports to China. The bottom line trade surplus came out higher than expected, but it’s not that exports advanced: they just fell less than imports, but still missed expectations.
In Australia, the ANZ Job Advertisements fell by 0.8%, more than erasing a small rise of 0.1% beforehand. But the Aussie did not need this insult to injury.
AUD/USD was under pressure in Asia and extended the falls in Europe. The new low is 0.7334, after the pair dropped under support at 0.7375. Further support awaits at 0.7280 and 0.7220. Resistance awaits at 0.7440 and 0.75.