China trade data, a big beat, AUD/USD remains well bid

AUD/USD remains well bid around the session high of 0.7578 after the data released in China showed a sharp rise in the March Trade surplus. 

Will China data lift the risk sentiment?

The lackluster response from the AUD could be due to the heightened geopolitical risk and the resulting risk-off environment in the markets. It remains to be seen if we see a risk reset on the back of a strong China data.

More importantly, the imports jumped 26.3% y/y, which is good news for Australia and other nations’ heavily dependent on exports to China. 

AUD/USD Technical Levels

A daily close above 0.7554 (200-DMA) would signal a temporary low is in place at 0.7473. Breach of immediate resistance at 0.7587 (Mar 28 low) could yield a re-test of 0.7609 (Jan 24 high) and 0.7624 (50-DMA).

On the other hand, a breakdown of support at 0.7520 (100-DMA) would open up downside towards 0.75 (zero figure) and 0.7473 (previous day’s low).