AUD/USD pays no heed to rise in China exports

The bid tone around Aussie failed to gather steam despite strong China exports data, leaving the AUD/USD pair largely unaffected around 0.7610 levels.

Supported by 23.6% Fibo

Pair found support at 0.7597 (23.6% of 0.6827-0.7835), but the subsequent rebound has been capped around 0.7610 levels even though Chinese data showed exports rose 2.9% in annualized terms, beating the forecast of 2.3%.

Moreover, weak imports (down 5.7%) could have capped gains in the Aussie, which is largely considered as a proxy for China). Meanwhile, uptick in the treasury yields is helping the USD as well.

AUD/USD Technical Levels

Acceptance below immediate support of 0.7597 (23.6% of 0.6827-0.7835) would open doors for a drop to 10-DMA of 7566, where a violation could trigger a drop to 0.7489 (100-DMA). On the other hand, a break above 0.7638 (Aug 2 high ) could yield a re-test of 0.7672 (76.4% of 0.7835-0.7145). A break higher could mean bears are trapped on the wrong side thus leading to short unwind and a quick spike to 0.7835.