News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
Australian Dollar Rides Out Broadly Stronger China Trade Data

Australian Dollar Rides Out Broadly Stronger China Trade Data

David Cottle, Analyst

Talking Points:

  • Chinese trade data came in broadly stronger
  • However market reaction was muted
  • The trade spat with Washington may have rendered these numbers too historic to be of interest

Find out what the #1 mistake that traders make is and how you can fix it!

The Australian Dollar showed little reaction to a broadly stronger set of Chinese trader figures Friday, perhaps because the ongoing tariff spat between Washington and Beijing has rendered them less useful as a likely gauge to the future.

The overall trade balance for the first quarter came in at CNY326.18 billion (US$51.9 billion), hugely ahead of the CNY 181 billion expected. Imports soared by 11.7%, compared to the same period last year while exports’ 7.4% rise was below the previous quarter’s gain. These look like quite strong figures for the first quarter, with little obvious trade disruption evident from the long Lunar New Year break.

However, that trade dispute with the US could see these data series weaken into the next quarter, absent a resolution which seems elusive at present. It is notable that China’s trade surplus with the US increased by 19.4%.

In US Dollar terms exports rose by 14.8%, while imports gained 8.9%. for a total balance of $141.6 billion.

The Australian Dollar sometimes plays the role of liquid China-market proxy but did not obviously do so on Friday morning in the wake of these figures. The currency remains in thrall to overall global risk appetite and the data impact may have been blunted not only by the China/US trade spat but also by a cooling property market which could see Chinese demand for imported raw materials fade as the year goes on.

Australian Dollar Rides Out Broadly Stronger China Trade Data

On its broader, daily chart, AUD/USD is taking a shot at the top of the dominant downtrend channel which has marked trade for most of this year. A broad revival in global risk appetite has taken the currency higher, but the ongoing broad interest rate differential in favour of the US Dollar continues to hang over the Aussie.

Australian Dollar Rides Out Broadly Stronger China Trade Data

The US Federal Reserve remains firmly in monetary tightening mode while the Reserve Bank of Australia is not expected to lift its own base rate from its 1.50% record lows until well into 2019.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES