Topic: Cozfx: Australian dollar hits session lows after Chinese trade data
Cozforex: The Australian dollar dropped to session lows against the US dollar on Monday as surprisingly weak trade data from China raised fresh concerns over the strength of the world’s second-largest economy.
AUD/USD was down 0.49% to 0.9025, from Friday’s close of 0.9068. COZFX strategist Nigel Boynton said, AUD/USD is predicted to find support at 0.9001, and a decline through could take it to the next support line of 0.8963. Meanwhile, the pair is predicted to find its first resistance at 0.9106, and a rise through could take it to the next resistance line of 0.9173.
Sentiment on the Aussie was hit after data released over the weekend showed that Chinese exports dropped 18.1% on a year-over-year basis in February, confounding expectations for a 6.8% increase, following a rise of 10.6% in January.
A separate report showed that the annual rate of inflation in China slowed to 2.0% in February, from 2.5% in January. China is Australia’s largest export market, which makes the Australian dollar sensitive to fluctuations in Chinese economic reports.
The greenback remain supported after official data on Friday showed that the US economy added 175,000 jobs in February, well above expectations for 149,000 new jobs.
The jobs report eased concerns over soft US employment and other economic data seen in the past few months. The strong figure indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed on the value of the dollar.
(COZ forex UK)