When is the China’s Trade Balance and how it could affect AUD/USD?
China’s Trade Balance Overview
The General Administration of Customs will publish its data for February on Tuesday at 03.00 GMT. Trade balance is expected to widen to $179.60B in February, compared to $114.10B in the previous reading. Exports are expected to rise by 7.1% YoY in February, while Imports are projected to increase by 6.3% YoY during the same period.
As the Chinese economy has an influence on the global economy, this economic indicator would have an impact on the Forex market.
How could the China’s Trade Balance affect AUD/USD?
AUD/USD trades on a negative note on the day in the lead up to China’s Trade Balance data. The pair edges lower as the US Dollar (USD) strengthens amid uncertainty from the Iran war.
If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at the February 26 high of 0.7136. The next resistance level emerges at the February 12 high of 0.7147, en route to the 0.7200 round figure.
On the downside, the 0.7000 psychological level will offer some comfort to buyers. Extended losses could see a drop to the March 9 low of 0.6956, followed by the January 26 low of 0.6906.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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