China trade preview - what to expect in AUD/USD before US elections?

Currently, AUD/USD is trading at 0.7710, down -0.10% on the day, having posted a daily high at 0.7731 and low at 0.7710.

AUD/USD has been better bid on the risk on and turn-around session overnight with markets favouring commodities and the antipodeans ahead of tomorrow's US elections. First off, we have the Chinese trade balance that could be a catalysts for further gains in the Aussie on better than expected positive outcomes. At the same time, supporting the Aussie, Steelmaking commodities extended their rally on Monday, along with coking coal  that issurging by its 10 percent limit with coke hitting its strongest level since 2013, amid tight supply among Chinese steel producers.

Chinese trade to take a back seat?

China trade balance is expected in CNY as 366.61bn while previous was CNY278.35bn. Exports (CNY) are expected in as -0.8%, with previous as -5.6% Imports (CNY) are expected as +5.0%, while prior was +2.2%. China trade balance in USD is expected as $51.7bn, while previous was $41.99bn and exports (USD) are expected in as -6.0%, while previous was -10.0%. Imports are expected as -1.0%, prior was -1.9%. However, in the eve of the US elections, reactions to anything within range could well be limited given such news will be taking a back seat. 

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AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view, the pair is back in a critical region, as it has been unable to sustain gains beyond the 0.7700 level since last April, and a downward move, on profit taking can't be disregarded at this point. 

Key Quotes:

"Technical readings in the 1 hour chart, however, continue favoring the upside, as indicators hold near overbought levels, easing their upward momentum, whilst the 20 SMA has turned sharply higher below the current level. In the 4 hours chart, the price bounced multiple times from a bullish 20 SMA, currently around 0.7675, while technical indicators lack directional strength, but hold within positive territory.

Meanwhile, with spot trading at 0.7712, we can see next resistance ahead at 0.7719 (Daily Open), 0.7719 (Weekly High), 0.7721 (Yesterday's High), 0.7722 (Weekly Classic R1) and 0.7722 (Monthly High). Support below can be found at 0.7710 (Daily Low), 0.7701 (Hourly 20 EMA), 0.7699 (Daily Classic R1), 0.7675 (Daily Classic PP) and 0.7672 (Hourly 100 SMA)."