AUD/USD jumps to tests 0.7050 as China trade positively surprises

By FXStreet FXStreet (Mumbai) – The AUD/USD pair saw a 30-pips knee-jerk rally towards 0.7050 levels, extending its recovery on 0.70 handle, after the Chinese trade data brought fresh signs of life into markets.

AUD/USD outperforms the commodities-currencies bloc

Currently, the AUD/USD pair rises 0.77% at 0.7043, having printed fresh three-day highs at 0.7049 last minutes. The Aussie’s recovery found fresh legs from the upbeat China’s trade data and somewhat calmed the Chinese external demand concerns, which improved risk-sentiment and bolstered the AUD bulls.

China Dec trade surprised markets to the upside and posted a surplus of 382.05 bn yuan vs 338.8bn expected. The exports YoY rose +2.3% vs -4.1% expected and as compared -3.7% previous, while imports YoY saw -4% vs -7.9% expected and -5.6% last.

Moreover, the rebound in the Asian stocks after the reported Chinese intervention to stabilize the yuan, and the resultant risk-in trades lifted the Aussie beyond the hourly 100-SMA at 0.7002. Japan’s Nikkei jumps +2.40%, while the Chinese benchmark, the Shanghai Composite index rallies 0.71%

Attention now shifts towards another set of China data and Australian jobs report due for release tomorrow, as the trading calendar for AUD remains quiet today.

AUD/USD Levels to watch

The pair …read more

Source:: FX Street