FXstreet.com (Barcelona) – China’s June trade data presented a mixed picture on the macro front, but the details brought uniformly bad news for the Australian dollar. Although the trade balance was much stronger than expected at $31.72 bn (cons. $24 bn), imports in general only grew modestly, and imports of iron ore in particular were down -8.6% m/m, according to Gareth Berry, FX Strategist at UBS. A monthly decline on this scale is not unheard of and is still within the realm of monthly statistical variation. “However, it could be the first sign of cooling Chinese demand for Australian commodities and AUDUSD saw some slippage on the headlines,” He added.
“AUD/USD Near-term support for the pair is at 1.0144 ahead of 1.0108, while resistance is at 1.0329,” he forecasted.