AUD/USD spikes to 0.7935 on Aus data, China trade in focus

The break higher above 0.79 handle in the AUD/USD pair found extra legs on the release of upbeat Australia’s business confidence data published by NAB.

AUD/USD: Will is sustain above 0.7900 on China trade?

The Aussie’s steady recovery gained momentum, with the bulls extending control in a bid to regain 10-DMA placed at 0.7955 levels on NAB’s business confidence data, while attention shifts towards the crucial China’s trade data release due out shortly.  

Australia NAB: Business sector’s strong run continued in July, wage growth subdued

Further gains in the spot are dependent on the Chinese trade report, as weaker imports data could weigh heavily on the AUD, given China is Australia’s biggest trading partner. Also, persisting risk-off environment amid overnight weakness in oil prices could also keep the renewed upside in check.  

Meanwhile, the US dollar extends its post-NFP consolidative mode versus its main competitors, having limited impact on the spot, with markets awaiting the US JOLTS job openings and IBD/TIPP Economic Optimism for fresh impetus on the buck.

AUD/USD Levels to watch   

Jim Langlands at FXCharts explains, “while the short term indicators are mixed, and reasonably neutral, the dailies are warning the longs and if we get below 0.7890/00 we could then see a move to 0.7875, which should be strong support if/when we get there, but below which opens 0.7850, 0.7835 and 0.7820. On the topside, 0.7945/50 will again see sellers ahead of Friday’s high of 0.7980, and 0.8000. I don’t think we go close to this today, but if wrong, above 0.8000 could then see a return to last Tuesday’s high of 0.8041 and then to the trend high of 0.8065.”