AUD/USD is back to square one as a better-than-expected China exports and imports figure forced the bears to ditch the AUD shorts.  The spot currently trades around 0.7750; largely unchanged on the day. 

China trade surplus jumps, but misses estimates

China trade surplus widened to CNY 281.60 billion in May from the previous month’s print of CNY 262.3 billion. The markets were expecting surplus to have jumped to CNY 324.1 billion. 
The exports spiked 15.5% y/y, beating the estimate of 13.5%. Imports jumped 22.1% y/y, bettering the estimate of 16.1% rise. 

The upbeat China data did help Aussie dollar recover losses, although the currency is having a hard time moving into the positive territory, given the sharp contraction in the Aussie trade surplus reported earlier today. 

AUD/USD Technical Levels

A break below 0.75 (zero figure + 5-DMA) would open up downside towards 0.7483 (50-DMA) and 0.7466 (10-DMA). On the higher side, breach 0.7556 (100-DMA + May 2 high) could yield a re-test of 0.7567 (previous day’s high) and 0.7586 (Apr 24 high).