China trade surplus widens, will it help AUD defend LT trendline?
- China trade surplus expanded in November.
- AUD/USD is holding above the long-term rising trendline.
The official data released today showed the China's trade balance for November came in at CNY 263.60 billion, beating the estimate of CNY 231.0 billion. The previous month's figure was CNY 254.47 billion. Exports jumped 10.3 percent year-on-year, topping the estimate of 2 percent by a big margin.
The data is positive for the AUD, which is widely seen as a proxy for China. However, the currency is struggling to find strong hands. As of writing, the AUD/USD pair is 0.7513.
Rising trend line intact
So far, the pair has been able to avoid a big break below the support offered by the trendline sloping upwards from the Jan. 2016 low and Dec. 2016 low.
That said, the support could be breached later today if the US non-farm payrolls and wage growth figure better estimates. Also, the death cross - 50-day MA and 200-day MA crossover - indicates the trendline support could fall soon.
AUD/USD Technical Outlook
Jim Langlands from FX Charts prefers trading from the short side. He writes -
" AudUsd is trading heavy after the softer than expected data of the least few days and seems set to test support at 0.7480, below which would allow a run towards 0.7400. Today’s slide was assisted by slides in copper & iron-ore futures and helped the Aud to reach the low of 0.7504.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Turning lower?
Weekly Indicators: Turning lower