The Australian dollar was the second best performing currency overnight rising to a 24-hour high of 0.7212 against the U.S dollar. We saw the Aussie rise on broad US dollar weakness, a continued rally in equities, and solid data from Australia and China.
On the data front yesterday Australian trade balance surplus for the month of September was up $3.017 billion in seasonally adjusted terms, the largest surplus in over a year-and-a-half. August surplus was revised to $2.342B from a previous estimate of $1.604B. In China yesterday Chinese Caixin Manufacturing PMI for October came in at 50.1, surpassing September 50.0 and much better than the contraction reading expected of 49.9. Looking ahead today and we will see the release of monthly Retail Sales figures at 11.30am AEDT with forecast is for sales growth of 0.3%. We will also see the release of Australian Producer Price Index (PPI).
From a technical perspective, the AUD/USD pair is currently trading at 0.7200. We continue to expect support to hold on moves approaching 0.7170 while now any upward push will likely meet resistance around 0.7250.