The aussie is beaten down after China's poor trade balance figures
The trade figures from China were extremely disappointing and has so far set the tone as we begin the new trading week. As a result, equities are trading lower while the aussie and kiwi are notably taking a hit in the currencies space.
For AUD/USD, price fell back below 0.7200 and touched a low of 0.7180 where it trades nearby currently. The downside move stalled as price moves close to test the 100-day MA (red line) @ 0.7175.
Additionally, there's also further support from the 100-hour MA (red line) @ 0.7178. Both these levels are key for buyers to retain the bullish momentum in the pair. If price starts to slip back below the 100-hour MA, the near-term bullish bias will be broken and the trading range extends back towards the 0.70 to 0.72 range (as that would mean the 100-day MA also gives way).
There isn't much else on the economic data front today to really poke at the narrative of the US-China trade war and global economic slowdown, so expect headlines to dominate but also watch out for the performance of US equities for clues. Earnings season is beginning this week and financials will be the first to report so let's see how things shape up over the next few days.
