AUD/USD moves little to 0.6760 ahead of Chinese trade data

• Recovery in global risk sentiment earlier helped Aussie to bounce off from a decade low.
• The US bans government agencies to purchase from Chinese companies, including Huawei.
• The US-China trade news and China’s trade data will be in the spotlight.

Despite recovering from a multi-year low during late-Wednesday, the AUD/USD pair clings to 0.6760 during the early Asian session on Thursday as traders await trade data from Australia’s largest customer, i.e. China.

The Aussie pair slumped to the lowest since early 2009 on the previous day as a big rate cut from the Reserve Bank of New Zealand (RBNZ), a notable trading partner of Australia, ratchet up rate cut expectations from the Reserve Bank of Australia (RBA). However, the quote recovered most of its losses by the day-end as Chinese press supports chances of the US-China trade meeting in September.

Earlier on Thursday, the RBA’s Assistant Governor (Financial System) Michele Bullock crossed the wires while praising the businesses and turning down the threats to banks.

Read: RBA’s Bullock: Financial health of businesses looks sound, no threat to banks

However, major attention was given to the news report from the Financial Times that said the US barred government agencies to buy equipments from top Chinese companies, including Huawei, as a measure of cracking down on security threats.

Read: US agencies barred from buying Huawei equipment – Financial Times

While July month China’s trade balance, import and export numbers are likely to grab immediate market attention, trade/political news will keep investors busy during the day.

Technical Analysis

An upside break of 0.6800 round-figure can escalate the pair’s pullback towards June month low of 0.6831 whereas 0.6700, January month low near 0.6683 and latest bottom around 0.6677 may keep luring sellers.