Will Chinese Trade Data Weigh on the AUD/USD?
Rowan Crosby • 1 min read
The US-China trade sagas have been making headlines for a number of weeks now. Today we get a chance to see some trade data out of China, to see whether they will have an impact.
The main thing to be looking out for is export growth. If the tariffs are having their intended impact, then Chinese exports will likely start to feel some pressure.
At the same time, the Chinese Government aren’t known for necessarily
Providing accurate information. And they are just as happy to keep on putting out virtual rhetoric that suits their agenda.
Nevertheless we are looking at:
Exports: expected +5.6%, prior +3.1% y/y
Imports: expected +12.5%, prior +6.0% y/y
The AUD/USD is an interesting trade here. With a weaker level of exports, that would suggest a negative for the AUD. As Australia exports a high percentage of their commodities to China for manufacturing. If China is slowing that isn’t good news.
The Aussie still has major resistance at 0.7500 and support at 0.7350.
I’m still looking to sell the spikes to 0.7450. We haven’t quite ticked that high, but I will be looking at short opportunities today.