AUD/USD Aussie finds a cushion as China's trade balance hits a $28.8 billion surplus

• Aussie halts decline for now as China trade data provides some encouragement for the Asia trading session.
• Chinese Trade Balance: +$28.8 billion, previous -$5 billion.

The AUD/USD has halted Tuesday's early slide following Chinese trade balance figures, and the pair is sticking close to the 0.7500 handle once again after slipping below the handle after Australian Retail Sales disappointed earlier.

China’s April trade balance (CNY): returns to surplus on exports rebound

Chinese Trade Balance data came in broadly positive, with China's trade surplus in US Dollar terms reaching $22.80 billion, a major increase over March's contraction of almost five billion.

The Aussie remains exposed to continued selling pressure despite the temporary boost from China's trade figures, and the bounce in China's trade balance will bode poorly for the ongoing US-China trade negotiations. US President Trump's primary concern with China is their large trade balance with the US, and an increasing number will be a thorn in the side of negotiations.

AUD/USD levels to watch

The Aussie remains deep within bear territory, and the pair remains exposed to further downside pressure, though some buyers may begin to pop out of the woodwork as FXStreet's Valeria Bednarik noted: "technically, the pair has held below the 23.6% retracement of its latest daily slump at 0.7550, as it hovers around a directionless 20 SMA, while technical indicators aim modestly higher within neutral territory."

Support levels: 0.7500 0.7470 0.7430

Resistance levels: 0.7550 0.7590 0.7620