Just caught China's latest trade data and it's pretty impressive. The surplus hit $213.62B in January-February, way above the $179.60B forecast. Exports jumped 21.8% YoY while imports climbed 19.8% YoY. When the Chinese economy runs this hot, it usually means more demand for commodities and raw materials globally.

The market's already reacting. AUD/USD dropped to 0.7055 right after the numbers came out. What's interesting is that China's trade strength typically lifts the Aussie since they're Australia's biggest trading partner. But today we're seeing USD strength offsetting that, probably due to geopolitical tensions. If this big Chinese trade momentum continues, I'd watch the 0.7136 level as potential resistance for AUD/USD.

The iron ore connection is real too. China's massive trade surplus usually correlates with higher commodity demand, which should support the Aussie longer term. Keeps an eye on how the RBA responds to this. Their interest rate decisions will be the real driver for AUD going forward.