The Australian Dollar soared on Wednesday, January 4, making it one of the best-performing developed currencies. AUD/USD gained 1.71%, the most since early November. The reason behind unusual traders activities in the Aussie is very controversial, for this type of bold action, news that China is considering easing its ban on Australian coal imports. According to Bloomberg, Chinese foreign trade executives discussed plans to resume some imports of Australian coal after a more than two-year ban as relations between the nations improve.

More precisely, China’s National Development and Reform Commission held talks on Tuesday on proposals to allow four major importers – China Baowu Steel Group, China Datang, China Huaneng Group and China Energy Investment – to make new purchases this year, according to people familiar with the matter, who requested anonymity to discuss private details.

It’s been a volatile start to the New Year for many top world currencies. However, several events, including yesterday’s lackluster speech of Fed’s chief Jerome Powell on the heels of FOMC Minutes of the Meeting, showing its fight against raging inflation is far from over, managed to change the direction of wind – although it’s anybody’s guess for how long. Having said that, the presence of the main trend turnaround is very much apparent on the daily swing chart. The trend turned up yesterday after buyers took out the main top at .6825. So the .6851 resistance level converted itself into a new support level. A move through .6688 will risk changing the main trend to back down. Another important support level is at .6792, followed by a long-term 50% level at .6760. For reliable bullish AUD forecast, the currency has to withstand those numbers no matter what.