- The Aussie loses further ground to the Kiwi as China trade figures come in mixed, with imports squeezing the trade surplus lower.
- Market focus will be keeping close tabs on the upcoming G7 summit meeting that promises lots of Trump tweets as world powers meet to discuss trade.
The AUD/NZD is continuing to round lower in Asia trading, testing into 1.0830 following China trade numbers that missed expectations, putting a further drag on the Aussie, which was already heading into Friday on a weak note.
China’s Trade Balance in USD terms for the month of May printed at $24.92 billion, below the expected $31.9 billion in a surprise reversal of the expected increase, with the last reading coming in at $28.38 billion. The fall comes as y/y Imports took an unexpected jump, climbing to 26% versus the expected 18.7%, while the last print came in at 21.5%.
Little else remains on the docket for Friday, and market participants will now be focusing on the upcoming G7 meeting which could see trade rhetoric ramp up as US President Trump heads into a summit of other world leaders and allies who are split, lacking consensus on how to deal with the US, with several key allies looking to lash out at the US for its protectionist actions lately, and those that are unwilling to engage the US for fear of further trade penalties.
AUD/NZD levels to watch
The AUD has been faltering amidst a technical recovery against the NZD, with the Aussie notching in a fresh monthly high of 1.0961 in May, though the pair is receiving some support from the 50-day EMA currently sitting at 1.0785. Further selling could see the pair fall into May’s lows near 1.0650, while a resurgence of Aussie buyers will be looking to force the pair back into January’s highs near 1.1050.
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