The AUD/USD pair picks up bids to re-establish the weekly top.
China’s Yuan-denominated exports increased by 31.7 percent in the first half of 2021, the Trade Balance improved in June, while Australian NAB data disappointed in June.
Markets remain slow as covid problems compete with optimism ahead of the US CPI and Australian fiscal stimulus.
As China releases positive trade statistics early Tuesday, the AUD/USD rises to an intraday high of 0.7500, up 0.32 percent. As a result, the risk barometer pair ignores domestic economic difficulties as well as cautious attitude ahead of the June US inflation data.
In Yuan terms, China’s exports increased by 31.7 percent in the first half of 2021. (H1 2021). Moreover, “customs spokesperson Li Kuiwen said at a news briefing in Beijing on Tuesday that imports climbed 43.9 percent,” according to Reuters. The June Trade Balance increased to $51.5 billion, up from $44.2 billion forecasted and $45.53 billion the month before.
Read: China’s Trade Balance in June: The surplus rises as exports rise and import growth slows.
National Australia Bank’s Business Confidence and Business Conditions fell below 23 and 33, respectively, earlier in the day, to 11 and 24, in that order.
AUD/USD bulls were tested earlier in Asia by worsening coronavirus (COVID-19) conditions in Australia, in addition to the negative data. The Pacific nation had a 10-month high infection rate the day before, delaying plans to access crucial areas such as New South Wales and Queensland.
Given the pandemic-related lockdown, Australian Prime Minister Scott Morrison is considering offering yet another local business aid package. The specifics of which will be revealed by the end of Tuesday.
In the case of the United States, a senior health official denied the need for Pfizer booster doses if the American was fully vaccinated. The risk of the Delta variation, on the other hand, could not be overlooked.
Nonetheless, S&P 500 Futures remain restrained near the record high, while US 10-year Treasury yields are positive for the third day in a row as of press time.
Ahead of the US Consumer Price Index (CPI) data for June, AUD/USD traders should keep a watch on the risk catalysts for intermediate fluctuations. Although indications point to a mixed result, any increase in pricing pressure will reignite reflation fears and strengthen the US currency.
Read: June US Consumer Price Index Predictions: Has inflation reached its apex?
Despite shattering a 12-day-old resistance line around 0.7500, the AUD/USD currency pair remains on the bears’ radar as long as it remains below the 200-day moving average of 0.7585./n
