AUD/USD rejects resistance 0.7350 post China trade

By FXStreet FXStreet (Bali) – AUD/USD has seen sellers returning at the key resistance of 0.7350, with an initial China-led spike of over 20/25 pips to the mentioned level seeing a reversal towards 0.7310 at present.

China trade surplus in Sept expands

China trade balance came in at 376.20 bn yuan vs $292.41 bn yuan expected and 368 bln yuan last. Exports were -1.1% vs -7.4% exp and -6.10% last, while imports were -17.7% vs -16.5% expected and -14.3% last.

Profit-taking time after 9-day winning streak?

The engulfing bar being printed in the lower timeframe charts of the AUD/USD suggests that the market is now more willing to engage in a process of distribution, probably intended to take some of the fat profits off the table following a relentless 9-day winning streak.

AUD/USD key levels

Should further pressure hit the Aussie, the next immediate support is seen at 0.73 round number, followed by 0.7225/30 – horizontal level + ATR 14 limit + Daily S2 – ahead of 0.7240 – Daily S3 -. On the upside, buyers need to reclaim the 0.7350 level to gain back control, and challenge the recent trend highs ahead of 0.74.
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Source:: FX Street