AUD USD Higher in Reaction to China Import News

The AUD USD is trading higher this morning but underyesterday’s high at .9276 in reaction to Chinese trade data released overnightthat showed China’strade surplus narrowed as imports accelerated in August.

The AUD USD is trading higher this morning but underyesterday’s high at .9276 in reaction to Chinese trade data released overnightthat showed China’strade surplus narrowed as imports accelerated in August.

We already know that Chinahas surpassed Japan and the U.S. to become Australia’s trading partner, butthis report could be laying the foundation for an even sharper rise in theAussie if the global economy begins to heat up. At this time, the AustralianDollar seems to be well positioned to gain from greater demand for higher riskassets.

Technically, the AUD USD is in an uptrend after crossing thelast swing top at .9221 on Thursday. This price level is likely to become newsupport since often old tops become new bottoms. In addition, an uptrendingGann angle at .9250 today is helping to guide this currency pair higher.

The pace of the current rally may begin to slow down as thismarket approaches a series of tops at .9323, .9337, .9364 and .9387. Once thisarea is cleared, we could begin to see an acceleration to the upside. The bignumber to overtake will be the November 2009 top at .9405. If this price getstaken out, then look for renewed talk of the Australian Dollar reaching parwith the U.S. Dollar.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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