The AUD/USD pair rose sharply in today’s Asian session with China’s better than expected trade data in April. The country’s trade balance came out at a healthy $18.45 billion, which was significantly higher than the expected $13.90 billion, and the previous period’s $7.71 billion. Meanwhile, its exports were up by 0.9%, higher than the expected contraction by 1.7%, and the previous period’s contraction by 6.6%. Imports were also up by 0.8%, beating expectations of a 2.3% contraction, and the previous period’s contraction by 11.3%.
These figures helped allay fears that the Chinese government would introduce broad-based monetary easing or inject stimulus after the first quarter revealed that its economy slowed down to its weakest pace in six periods.
Meanwhile in Australia, the country released positive employment data in April, which also helped lift the AUD/USD pair. Its employment change was at 14,200, better than the expected 6,750, albeit slightly lower than the previous period’s 22,000. Full time employment was also at 14,200, as part-time employment was at zero. Then finally, Australia’s unemployment rate remained at 5.8%, as the market largely expected it to go up a notch at 5.8%.
The combination of the positive news from China and Australia helped the AUD/USD break past the 0.9350 level early in today’s Asian session. It currently shows no signs of stopping as it is trading at 0.9378, with initial resistance seen at 0.9342, followed by 0.9366. Meanwhile, initial support is at 0.9302, followed by 0.9279.
Upcoming Events Today
The day isn’t over yet and there are still a number of important data coming out today, including Switzerland’s CPI data (7:15AM GMT), the BoE and ECB’s respective interest rate decisions (11AM GMT, 11:45AM GMT), then finally Fed Chair Janet Yellen’s speech (1PM GMT).
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