AUD/USD looks set to retake 0.77 handle on strong China imports data

AUD/USD looks set to cut through psychological resistance of 0.77 after the data released in China showed June imports in USD terms rose at an annualised rate of 17.2%, beating the estimated rise of 14.5%. 

Exports growth was 11.3% y/y, which is well above the estimate of 8.9%. That amounts to a trade surplus of $42.77 billion, which is slightly above the estimate of $42.60 billion.  The previous month’s trade surplus stands unrevised at $40.79 billion. 

The Aussie 10-year yield isn’t impressed by the strong China data as it continues to nurse losses at 2.7%; down 3.7 basis points on the day. The spot clocked a high of 0.7697 and was last seen trading around 0.7692 levels. 

AUD/USD Technical Levels

A daily close above 0.7712 (June 30 high) would open doors for 0.7749 (Mar 21 high) and 0.7778 (Nov 8 high). On the downside, breach of support at 0.7674 (session low) could yield a sell-off to 0.7643 (5-DMA) and 0.7635 (10-DMA).