AUD/USD hit fresh session lows at 0.7417 on poor Chinese trade data, but has pared some losses to currently trade at 0.7426.
- China trade balance for February in yuan terms came in at +209.5bn missing expectations at +341bn and compared to 402.20 in the previous month.
- Worse than expected Chinese exports and imports data raised worries over the country's external demand and also reinforced China slowdown fears.
- Asian markets turned negative, spurred risk-off across markets, which gave up higher yielding assets such as the AUD in favour of safe-havens.
- The pair is holding on to the 0.74 handle is above 200-DMA and the daily cloud. Major moving averages are also biased higher.
- But RSI has turned lower from overbought levels and Stochs are at overbought zone, so some caution advised.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-takes-out-072-handle-after-upbeat-Australia-GDP-data-break-above-07250-could-see-further-upside-171062) has hit targets.
Recommendation: Book full profits, we will wait for correction to run its course to enter longs again.
