AUD/USD picks bids around 0.6700 despite weaker Chinese imports data

• AUD/USD has sensed buying interest around 0.6700 despite lower-than-expected China import data.
• Earlier, the Australian GDP data remained a little lower than estimates on a quarterly basis.
• The DXY has refreshed its two-decade high at 110.61 on soaring hawkish Fed bets.

The AUD/USD pair has managed to defend a slippage below the immediate support of 0.6700 despite the release of downbeat China’s import data. Chinese imports have landed extremely lower at 0.3% against the expectations and the former release of 1.1% and 2.3% respectively.  Also, the export data have been trimmed to 7.1% vs. estimates of 12.8%. China’s Trade Balance has slipped sharply to $79.39B against the expectations of $92.7B. It is worth noting that Australia is a leading trading partner of China.

The week has remained too much volatile for the aussie bulls. First, the Reserve Bank of Australia (RBA) hiked the Official Cash Rate (OCR) by 50 basis points consecutively for fourth time and pushed the OCR to 2.35%. Also, the RBA provided a further roadmap by setting a target for interest rates at 3.85%, which will be met next year. Also, discussed the peak of the inflation rate, which is seen at 7%.

Then, Gross Domestic Product (GDP) numbers, were mostly decent. The economic data landed at 0.9%, lower than the expectations of 1% but above the prior release of 0.8% on a quarterly basis. However, the annual data has improved to 3.6% against the estimates and the prior print of 3.5% and 3.3% respectively.

Too many catalysts this week are confusing the market participants in designing positions for the AUD/USD pair. Right from the rate hike decision by the RBA to mixed GDP numbers, investors are in fix to chase downside momentum due to an upbeat US dollar index (DXY) or shift to aussie bulls.

Meanwhile, the US dollar index (DXY) has refreshed it's two-decade high at 110.61 as odds of a rate hike by the Federal Reserve (Fed) have increased significantly. The speech from Fed chair Jerome Powell, scheduled on Thursday will dictate the likely monetary policy action.