Forex News: Australian Dollar Rises After China Trade Surplus Data

Australian Dollar Rises After China Trade Surplus Data

(RTTNews) - The Australian dollar strengthened against other major currencies in the European session on Tuesday, as China's trade surplus increased more than anticipated at the start of 2026, due to a significant rise in exports.

The official data showed that China's exports registered a double-digit growth during January to February period despite the fall in shipments to the United States, leading to a surge in the trade surplus.

Exports surged 21.8 percent from the prior year, faster than the 6.6 percent rise in December, the General Administration of Customs said. This was also stronger than economists' forecast of 7.1 percent.

At the same time, imports climbed 19.8 percent compared to 5.7 percent rise in December. Economists were expecting an annual growth of 6.3 percent.

As a result, the trade surplus rose to $213.6 trillion in the January to February period from $169.2 billion in the same period last year. This was well above forecast of $179.6 billion.

Deputy Governor Andrew Hauser of the Reserve Bank of Australia (RBA) stated that the Middle East and oil price volatility pose a real threat to the central bank. Hauser went on to say that the reaction is contingent upon the magnitude and duration of the price shock, both of which are very unknown.

Investor sentiment advanced on hopes for a potential resolution to the U.S.-Israeli war on Iran.

U.S. stock futures traded lower as tensions prevail, with Israel launching waves of airstrikes in retaliation for a barrage of Hezbollah rockets and missiles.

Iran launched new barrages of missile and drones at Gulf Arab states hosting U.S. military bases and Israel as supporters of the Islamic Republic staged rallies to celebrate the appointment of a new hardline leader, Mojtaba Khamenei, son of former Supreme Leader Ali Khamenei.

Energy markets remain a central focus after the recent surge in crude prices fueled concerns about the outlook for inflation, interest rates and economic growth.

Brent crude prices last traded down over 6 percent at 92.64 a barrel, recovering some early losses after finance ministers from the G7 countries broadly agreed to delay the release of oil from their strategic reserves.

WTI crude futures were down nearly 7 percent at $88.34 a barrel after hitting a low of $84.45 earlier.

Gold traded 0.6 percent higher at $5,169 an ounce.

In economic news, Australia's Westpac-Melbourne Institute Consumer Sentiment Index rose 1.2 percent to 91.6 on month in March 2026, reversing a 2.6 percent drop in the prior month and marking the first rise since last November.

In economic releases, traders await a key batch of U.S. economic data later this week, including the January consumer price index report scheduled for release on Wednesday and the February personal consumption expenditures price index due on Thursday for additional clues on the Fed's rate trajectory in the coming months.

In the European trading today, the Australian dollar rose to more than a 1-year high of 1.6387 against the euro and a 5-day high of 0.9636 against the Canadian dollar, from early lows of 1.6460 and 0.9591, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.62 against the euro and 0.98 against the loonie.

The aussie advanced to 111.82 against the yen, from an early low of 111.29. On the upside, 112.00 is seen as the next resistance level for the aussie.

Against the U.S. and the New Zealand dollars, the aussie climbed to 1-week highs of 0.7099 and 1.1976 from early lows of 0.7053 and 1.1920, respectively. The next resistance levels for the aussie are seen around 112.00 against the yen, 0.71 against the greenback and 1.20 against the kiwi.

Looking ahead, U.S. weekly ADP employment data, U.S. Redbook report and U.S. existing home sales for February are slated for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews