AUD/USD began the day around 0.9270 and was holding near that level until the Tokyo open. The Yen rallied at the Tokyo open, pushing AUD/JPY to fresh lows below 94.00. The risk-off bias hit the AUD/USD as well and it reached a low of 0.9240 ahead of the Chinese trade data. Then, the Chinese trade balance came in much better than expected and led to a quick move up to 0.9266. However, Aussie couldn’t sustain momentum and supply from leveraged names brought it back to the previous session low, where it is consolidating now.
I think the Aussie will continue to trade with an offered tone and I’d expect 0.9280 intraday resistance to hold. Next support is at 0.92, though there is likely a barrier there and option-related demand ahead of it.
Regarding Chinese data, the slowing imports show there is not much of an improvement in the domestic economy and the strong growth in exports is likely to lead to further yuan appreciation and dollar sales.
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