AUD/USD extends pullback beyond 0.6900 after upbeat China trade data

• AUD/USD adds gains after taking a U-turn from 0.6925.
• China’s June month Exports grew by 4.3%, Imports rose 6.2%.
• Risk-tone dwindles amid mixed headlines concerning the virus and Sino-American tussle.

AUD/USD takes the bids near 0.6945 after trade numbers from China flashed upbeat signals on early Tuesday. The pair earlier dropped to 0.6925 but recovered afterward to snap the three-day losing streak.

June month trade figures from China suggest the world’s largest commodity player, also the key customer of Australia, gain further momentum in its post-coronavirus (COVID-19) recoveries. Exports and Imports cross the previous +1.4% and -12.7% figures with +4.3% and +6.2% marks respectively.

Earlier during the day, National Australia Bank’s (NAB) Business Confidence and Business Conditions numbers for June also portrayed an upbeat scenario for the pacific major. Details suggest the NAB Business Conditions recovered from -24 prior and -39 forecast to -7 whereas Business Confidence rose beyond -87 expected and -20 previous to +1. The quote might have also taken clues from the S&P 500 Futures’ pullback. The risk barometer prints mild gains over 3,150 while rising 0.15% on a day as we write.

Talking about the underlying risk catalysts, the surge in the US pandemic numbers seems to fade the momentum but figures from Australia and some parts of Asia refrain from receding. Elsewhere, the South China Sea becomes an additional factor on which Washington and Beijing chose to disagree off-late.

Looking forward, the US inflation data and beginning of the earnings season could offer immediate direction to the pair.

Technical analysis

FXStreet’s Omkar Godbole cites triple bottom on the hourly chart to suggest a further recovery in the pair.

Reprinted from FX Street. The Copyright all reserved by the original author.

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