Market News & Analysis

Top Story

AUD is taking advantage of China’s exports growth

Australia remains very closely linked to Chinese economy and is strongly impacted the current Covid-19 crisis. But this morning, government data showed that China's exports grew unexpectedly by 3.5% on year in April (vs -11.0% expected), while imports dropped 14.2% (-10.0% expected). Also, China's Caixin Services PMI rose to 44.4 in April (50.1 expected) from 43.0 in March.

From a technical point of view, on an intraday chart, AUD/USD has broken above a declining trend line. It also stands above its 50-period moving average (in blue) as the daily RSI is pushing north. Readers may therefore consider the potential for further advance above horizontal support at 0.6395. The nearest resistance would be set at May 5 top at 0.6475 and a second one would be set at set at 0.6500 in extension.

Source: TradingView, GAIN Capital

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.