AUD/USD: Weakest in Asia, China trade miss weighs

The AUD/USD pair is seen consolidating the downside near three-month troughs, as markets continue to weigh worse-than expected China trade balance report for September.

AUD/USD hit by China trade data

Currently, the AUD/USD pair trades -0.41% lower at 0.7530, having posted fresh 3-month lows at 0.7520 on the Chinese data release. The Aussie emerges the worst performers in Asia, as worse-than expected Chinese trade figures combined with weaker oil prices pose double whammy.

China trade surplus narrowed in Sept and came in much weaker than expectations, while exports reported a huge miss, reinforcing external demand concerns, which weighed negatively on the AUD. Australia is highly dependent on China for its exports.

Further, weak China data-led risk-aversion across the markets also added to the weakness surrounding the higher-yielding Antipodean. Next of note for the major remains the US employment data due later in the NA session. In the meantime the spot will closely track broader market sentiment for further moves.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7591 (50-DMA) above which gains could be extended to the next hurdle located 0.7618 (20-DMA) and 0.7693 (Oct 4 high). On the flip side, the immediate support located at 0.7499 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7465 (daily S3) and below that at 0.7450 (psychological levels).