China beat expectations after it released its trade balance figures for January earlier in today's Asian trading. It came out at a whopping $31.86 billion, which was significantly higher than the expected $23.65 billion. Previously, its trade balance was at $25.60 billion. The country's exports rose by 10.6% over the past 12 months, versus the 2.0% expected, and the previous 4.3%. Meanwhile, imports rose by 10% versus the 3.0% expected, and the previous 8.3%.
Naturally, the positive news from China had a positive effect on the aussie. This led the AUD/USD near the January high at 0.9084. This helped the pair regain the momentum it had yesterday after Australia posted better-than-expected business conditions and confidence data. It is currently trading at 0.9055, with initial resistance seen at 0.9103, followed by 0.9126. Meanwhile, initial support is at 0.8990, followed by 0.8968.
The Chinese trade balance data also helped lift the aussie against the yen in today's Asian session. The pair opened weakly earlier just below the 92.40 area, but has since risen near the 92.90 zone. It is currently trading at 92.88, with initial resistance seen at 93.66 followed by 93.89. Meanwhile, initial support is at 92.04, followed by 91.81.
As for the EUR/USD, the pair went on a downtrend starting yesterday after Fed Chairwoman Janet Yellen delivered her speech. There wasn't any difference in her statement with 29 January's FOMC Statement. The gist of it was that the Fed will continue to reduce its pace of asset purchases, but there won't be any pre-set course for it. In addition, she said the Fed won't immediately raise interest rates once they reach the 6.5% unemployment threshold. Rather, they will use it as a guide and then look at the overall performance of the economy and see if it would justify an increase.
The EUR/USD pair is currently trading at 1.3632, with initial resistance seen at 1.3662, followed by 1.3696. Meanwhile, initial support is at 1.3607, followed by 1.3573.
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