15 Minutes Chart
AUD/USD traded back below 1.05 briefly during early Asian session, and was propelled upwards thanks to impressive Chinese Trade Balance figures. Y/Y Exports grew 14.1% in Dec vs 5.0% est and Imports grew 6.0% vs 3.5% est. The better than expected import figures gave hope to traders who are fearful of a decline of Mining Exports from Australia. With China’s economy seemingly healthier than expected, Australia should not be that far behind.
Bears may sneer at current price levels, thinking that the Chinese news “saved” 1.05, but in truth, the support around 1.049 was never really threatened with most recent bearish momentum seemingly slowing down before hitting the previous swing low around 12 hours before.
Instead of focusing on 1.049/1.05, bears could be better served looking back at the weekly chart, where current price is approaching a downward trendline and a multi-month ceiling around 1.058.
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