Long AUD/NZD On A Pullback, Long AUD/USD With A Stop At 0.75; Long AUD/JPY
The main overnight data came from China’s trade figures.
They’re distorted by seasonal effects but the underlying trend is of a clear pick up in trade growth overall, with imports in particularly strong in CNY terms, helped by rising prices. The trade balance meanwhile, was in deficit on the month and long-term, is in a deteriorating trend. There’s nothing to make the CNY look ‘undervalued’ in the data that I can see but the greater significance is that strong imports still support Asian growth for now.
AUD/NZD longs are a way to benefit but that’s more a case of buying pull-backs than buying here. Long AUD/USD with a stop at 0.75 appeals to me, and long AUD/JPY too