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AUD/USD cycling near 0.76 as traders await the China Trade Balance

2018-6-8 15:28:19Trading Strategies
AUD/USD cycling near 0.76 as traders await the China Trade Balance

The AUD/USD is trading sideways in the early Asia session,  testing around Thursday's close near 0.7620 ahead of Chinese Trade Balance figures.

The Aussie got knocked lower on Thursday after the Australian Trade Balance missed forecasts and contracted by more than expected, halting the AUD's recent pick-up and leaving the AUD/USD pair on weaker footing with China trade numbers due early in the Friday session. 

The China Trade Balance numbers don't have an exact release time, but the data normally drops sometime around 03:00 GMT. In the China Trade Balance preview, FXStreet's own Omkar Godbole noted that "export growth is seen slowing to an annualized rate of 1.7 percent in May following at 3.7 percent rise seen in April. Meanwhile, imports growth is also seen slowing to 8.6 percent in May from 11.6 percent in April. So, exports are seen lagging by a big margin, hence the trade surplus is expected to have narrowed to CNY 148.309 billion in May from 182.80 billion in April."

AUD/USD levels to watch

As noted by FXStreet Chief Analyst Valeria Bednarik on the pair's technical outlook, "the pair nears the 50% retracement of the mentioned decline at around 0.7615, and in the 4 hours chart, it broke below the 20 SMA, while technical indicators lost their upward strength, the Momentum currently heading nowhere around its mid-line while the RSI heads sharply lower at around 48, all of which supports a steeper correction on a clear break of the mentioned Fibonacci support."