China has probably displayed and shown the far most significant reduction in Exports and Imports in the month of March as Exports fell by over 15% and Imports by over 12%. The trade balance barely reach $3b where the expectation was around $45b. Dismal numbers as economists have been quoting around Asia this morning.
The relationship between the AUD and the Chinese economy has been a well and long recorded experience as the markets are highly correlated due to the direct resource hungry and a resource rich relationship.
Australian bankers had been highly interested and eager to see a continual drop in the AUD and interest rates but the RBA has resisted for the last two months so far. But currencies take directions from more than Reserve and Central Banks. The AUD has taken a massive swipe and trading almost 1% down at Sydney afternoon Monday the 13th April 2015 based on the earlier Chinese data and thereby giving bankers what they had been seeking from the RBA.
The AUD is showing some pushback as $.7580 but the US has still to open and punch in their volumes on the AUD. Whilst we believe that the AUD is currently trading weaker than real value we are buying long positions under $.7590.