China trade surplus came in at USD29.86 billion in March of 2016, up significantly from USD3.08 billion reported a year earlier but slightly less than market consensus, as exports rose while imports fell.

A little point of interest was that in the dovish IMF report China growth was upgraded by 0.2% to 6.5%.

Exports (YoY) increased by 11.5% to USD160.86 billion, the first growth since June 2015.

Imports fell less than expected by 7.6% to USD122.16 billion.

In February, the country registered a USD32.59 billion trade surplus.

As PBoC currently seems to be interested in USD/CNY stability, we believe that today’s trade data will have a limited impact on USD/CNY exchange rate in the short term, but otherwise this data is something NZD and AUD are exposed to.

In the meantime, following USD softness, CNY has weakened somewhat against the basket of currencies. Hence, it is recommended to buy either 3M USD/CNY forwards of march expiries.

As per RSI and MACD, the bullish momentum likely to prolong in AUDCNY, but on the contrary stochastic and 10 day simple moving average signals sell. With ATR(14) indicates less volatile swings. Hence, on trading perspectives we're neutral on this pair. But advise to stay hedged in this pair via 1M ATM straddles by shorting (1%) OTM puts.