The AUD USD is trading higher this morning but under yesterday’s high at .9276 in reaction to Chinese trade data released overnight that showed China’s trade surplus narrowed as imports accelerated in August.

We already know that China has surpassed Japan and the U.S. to become Australia’s trading partner, but this report could be laying the foundation for an even sharper rise in the Aussie if the global economy begins to heat up. At this time, the Australian Dollar seems to be well positioned to gain from greater demand for higher risk assets.

Technically, the AUD USD is in an uptrend after crossing the last swing top at .9221 on Thursday. This price level is likely to become new support since often old tops become new bottoms. In addition, an uptrending Gann angle at .9250 today is helping to guide this currency pair higher.

The pace of the current rally may begin to slow down as this market approaches a series of tops at .9323, .9337, .9364 and .9387. Once this area is cleared, we could begin to see an acceleration to the upside. The big number to overtake will be the November 2009 top at .9405. If this price gets taken out, then look for renewed talk of the Australian Dollar reaching par with the U.S. Dollar.