AUD/JPY: Strong China Exports fail to draw bids
|- AUD/JPY trades in the red near 77.30 versus 77.50 in early Asia.
- China's Export jumped 21.1% in November, indicating global economic recovery.
- Moderate losses in the Asian stocks overshadow China data and keep the AUD under pressure.
With the Asian stock markets flashing red, the AUD/JPY pair struggles to cheer a better-than-expected China data released a few minutes ago.
Having faced rejection at 77.50 in early Asia, the pair fell below 77.24 ahead of China's data and was last seen trading near 77.30, representing a 0.10% drop on the day.
China's Exports surged
Exports or outbound shipments jumped 21.1% year-on-year in dollar terms in November, beating the forecast of 12% by a big margin and indicating a recovery in the global demand despite the resurgence of coronavirus. Imports, a sign of domestic demand, also rose 4.5%
So far, however, the data has failed to put a bid under the AUD. Investors seem focused on the Asian stocks, which have pulled back from record highs seemingly on virus concerns and reports that Washington is mulling sanctions on some Chinese officials.
MSCI's broadest index of Asia-Pacific shares outside Japan is down over 0.2% following four straight sessions of gains, according to Reuters. The futures tied to the S&P 500 are also trading 0.23% lower on the day.
Should the European stocks print gains on the back of China data, the AUD/JPY pair will likely turn higher and 77.50. That level has proved a tough nut to crack since Thursday.
Technical levels
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