- AUD/USD keeps losses, remains in the 0.76 neighborhood.
- China reported a narrower trade surplus.
The AUD/USD pair is trading near a session low of 0.7606, having failed to capitalize on the bullish breakout earlier this week.
China trade surplus narrowed to CNY 156.51 billion in May from April’s print of CNY 182.80 billion but bettered the estimate of CNY 148.309 billion. Imports rose 15.6 percent in May following an 11.6 percent rise in April. Meanwhile, exports jumped 3.1 percent, beating the estimate of 1.7 percent, but down from the previous month’s print of 3.7 percent.
The narrower Chinese trade surplus is unlikely to bring cheer to Trump administration. Moreover, Trump’s response and the impact on the AUD and other risk assets is more dependent on China’s surplus with the US rather than the aggregate figure.
AUD/USD Technical Levels
The currency pair breached the key long-term falling trendline (drawn from the Jan. 26 high and Apr. 19 high) earlier this week, but the bulls have not been able to capitalize on the bullish break, possibly due to trade war fears.
Resistance: 0.7627 (daily high), 0.7643 (March 29 low), 0.7677 (June 6 high)
Support: 0.76 (psychological level), 0.7514 (June 1 low), 0.7476 (May 30 low)
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