When is the China's Trade Balance and how could it affect AUD/USD?

The China's Trade Balance Overview

The General Administration of Customs will publish its data for August on Monday at 03.00 GMT. Trade balance is expected to widen to $99.2B in August, compared to $98.23B in the previous reading. Exports are expected to climb by 5.0%, while Imports are projected to rise by 3.0%. 

As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market.

How could the China's Trade Balance affect AUD/USD?

AUD/USD trades on a positive note on the day in the lead up to the China's Trade Balance data. The pair gains ground as the US Dollar weakens amid rising expectations of the Federal Reserve (Fed) interest rate cut later this month.

If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at the July 10 high of 0.6591. The next resistance level emerges at the July 24 high of 0.6625. To the downside, the September 5 low of 0.6513 will offer some comfort to buyers. Extended losses could see a drop to the 100-day Exponential Moving Average (EMA) at 0.6585. The next contention level is located at the June 20 low of 0.6448.