Chinese Government has revealed its recent reports about its trade. Positive figures of trade of China have put pressure on AUD. The current trading scenario has resulted in the flat trade of AUD.
Trade Figures of China:
The export of USD has increased by 30.6% year/year. This figure is far less than the anticipated figure of 38.1%. At the same time, the increase in imports spiked up 38.1%. The anticipated import figure was 24.4%. Thus the figures of imports are greater than the anticipated figure. The difference between exports and imports is a reflection that its trade surplus has reduced to a great extent. Nevertheless, these spiked up figures of imports indicate strong demand. Therefore these figures still support positive economic recovery of China. Global growth is slowly making its way to perform beyond its anticipated targets. These trade circumstances have led IMF to upgrade its figure of global growth from anticipated 5.5% to an increased 6%.
Flat AUD and Chinese Trade:
AUD is facing the brunt of the economic positivity prevailing in China. The Chinese trade figures has capped the smooth flow of trade of AUD. It has made it into a flat trade of AUD. The fast global growth has pinned the sensitive Aussie. The better than expectations Chinese figures of Wholesale inflation also support the same fact.
Bearish Trend of AUD/USD:
The traders of Australian Dollar are now waiting Chinese GDP figures of the first quarter of 2021. Thus there is bearish pressure on Aussie. Aussie is now having a Head and Shoulder trade pattern. The price is moving along the neckline of this pattern. Current support point is between 0.7564 and 0.7622. If the price dips lower then it will face further losses. Alternatively if the price increases then it will eye the value between 0.7820 and 0.7798. About 55% of its traders are net long.