AUD is taking advantage of China’s exports growth
Christophe Chevalier May 7, 2020 7:20 AM
AUD is taking advantage of the unexpected China’s exports growth.
Australia remains very closely linked to Chinese economy and is strongly impacted the current Covid-19 crisis. But this morning, government data showed that China's exports grew unexpectedly by 3.5% on year in April (vs -11.0% expected), while imports dropped 14.2% (-10.0% expected). Also, China's Caixin Services PMI rose to 44.4 in April (50.1 expected) from 43.0 in March.
From a technical point of view, on an intraday chart, AUD/USD has broken above a declining trend line. It also stands above its 50-period moving average (in blue) as the daily RSI is pushing north. Readers may therefore consider the potential for further advance above horizontal support at 0.6395. The nearest resistance would be set at May 5 top at 0.6475 and a second one would be set at set at 0.6500 in extension.
Source: TradingView, GAIN Capital
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