The AUD/USD pair is recovering on Wednesday, but still trading sideways.
On Wednesday afternoon, the Australian Dollar is growing against the USD. The current quote for the instrument is 0.7673. Despite some active movements, the borders of the sideways range are too strong to break.
In the morning, China published several reports. As we said many times, the Chinese statistics is very important for Australia, because China has been and will be its main trade and economic partner.
So, the Chinese Balance of Trade in October was $38.2B, which is less than expected ($39B), but better than the month before ($28.61B), that’s why investors were satisfied. The components of the report show that the Export increased just by 6.9% y/y after adding 8.1% y/y in the previous month. Meanwhile, the Import expanded by 17.2% y/y against the expected reading of 16.0% y/y.
Frankly speaking, the report is quite mixed. However, investors are neutral right now and don’t want to look for some hidden problems, especially if there aren’t any. The Export decline may be influenced by a seasonal factor and it doesn’t impact Australia a lot. At the same time, the Export growth is god for the Aussie.
In order to break the sideways range, the AUD/USD pair requires either a strong catalyst, such as some impressive statistics from Australia, or a burst of activity in the USD forced by, for example, the interest rate comments.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.