AUD/USD turns positive on slightly upbeat China data

Bid tone around AUD gathered pace, pushing the AUD/USD into the positive territory after the data in China showed rise in exports and imports in Yuan terms.

Eyes 0.77 handle

Spot recovered from the low of 0.7664 levels and is now eyeing 0.77 handle. China exports spiked 5.9% y/y in Yuan terms, beating the estimated rise of 2.9%. Imports jumped 10.8% y/y, bettering the estimate of 0.7% rise.

In USD terms, exports fell 2.8%, while imports gained 1.5%. Both figures beat estimates.

Overall, the data is positive given the rise in imports in Yuan terms as well as dollar terms underscore improvement in consumption. Meanwhile, rise in exports is positive news as well. Consequently, the bid tone around Aussie strengthened.

AUD/USD Technical Levels

The spot was last seen trading around 0.7683. A break above 0.77 (zero figure) could yield 0.7723 (Aug 18 high). A violation there would expose 0.7760 (Aug 11 high). On the other hand, a breakdown of support at 0.7651 (previous day’s low) would open doors for a drop to 0.76, under which the spot could target 0.7488 (100-DMA).