- After strong economic data from Australia and China, the AUD/USD pair is on the verge of a bullish breakout.
In a report for today, data from Caixin showed that China’s services PMI rose to 57.8 in November.
In Australia, exports and imports rose, resulting in a $7.4 billion trade surplus.
With strong economic data from Australia and China, the AUD/USD pair is on the verge of a significant bullish breakout. The pair is trading at 0.7414, its highest level since September 1.
AUD/USD Rally Gains Momentum
Australia’s trade surplus increases
The Australian economy is running at full speed, as the latest trade figures show. In a report released today, the Australian Bureau of Statistics (ABS) stated that the country’s exports rose by 5% to more than 35.72 billion Australian dollars in October.
In the same period, the country’s imports rose by 1% to more than a$28.26 billion. As a result, the total trade surplus rose from a$5.6 billion to more than a$7.45 billion.
The country’s trade has been boosted by China, whose demand for raw materials has recently increased significantly. This demand has been accompanied by high prices and important Australian exports such as coal and iron ore have continued to perform well.
These figures came one day after the office released the country’s third quarter GDP data. The economy rebounded by 3.3% in the third quarter due to higher household spending. Earlier this week, the Reserve Bank of Australia (RBA) also pledged to continue supporting the economy.
China Services PMI performs well
The AUD/USD exchange rate is also rising as foreign exchange investors react to the overall data of Chinese services. In a Caixin report, the services PMI rose to 57.8 in November from 56.8 the previous month.
This increase was due to strong demand for the country’s services, which led to record employment growth. Input prices rose due to relatively firm demand for products. Most importantly, however, companies remained very confident about future prospects.
These figures came two days after the company released strong PMI data for the manufacturing sector. The figures showed that the PMI remained above 50 for the seventh consecutive month. In another report from HSBC yesterday, Chinese companies expect to return to pre-pandemic levels by 2022, faster than the global average.
China and Australia are usually very closely related because of the volume of trade between the two countries. First, China is the largest consumer of Australia’s goods and services.
Technical outlook AUD/USD
Technical Table AUD/USD
On the daily chart, we can see that the AUD/USD pair is in a strong overall upward trend. With the current value of 0.7414, the pair is at its highest level since September. The trend is supported by the short term and long term moving averages. Therefore, I suspect that the upward momentum will continue if we can break through this resistance. You can open an account with leading forex brokers to participate in this rally.