AUD/JPY: Big miss on Chinese imports bolstered the bearish setup

AUD/JPY is falling fast, having suffered a double top breakdown on the hourly chart earlier today.
A below-forecast China's imports number is likely adding to the bearish tone around the AUD/JPY pair.

Omkar Godbole FXStreet Contributor

The AUD/JPY pair is fast losing altitude, as the dismal China trade number released a few minutes before press time bolstered the bearish pressures around the Australian currency.

The pair is currently trading at the session low of 77.62, having breached the double-top neckline of 77.90 ahead of the China data, which showed the imports fell 3.1 percent year-on-year in CNY terms, missing the estimate of a 12 percent rise by a big margin.

The drop in the imports highlights the slowdown in the world's second-largest economy. The Aussie, therefore, is getting whacked across the board.

Further, exports came-in at a meager 0.2 percent, also missing the forecast of 6.6 percent by a big margin. That likely represents an anemic global demand.

As a result, the S&P 500 futures, which are currently down 0.86 percent, could drop even further, leading to a rise in the haven demand for JPY and a deeper drop in the AUD/JPY pair.

AUD/JPY Technical Levels

AUD/JPY

Overview:
    Today Last Price: 77.67
    Today Daily change: -52 pips
    Today Daily change %: -0.665%
    Today Daily Open: 78.19
Trends:
    Previous Daily SMA20: 78.07
    Previous Daily SMA50: 80.53
    Previous Daily SMA100: 80.51
    Previous Daily SMA200: 81.45
Levels:
    Previous Daily High: 78.36
    Previous Daily Low: 77.81
    Previous Weekly High: 78.36
    Previous Weekly Low: 77.02
    Previous Monthly High: 84.05
    Previous Monthly Low: 77.15
    Previous Daily Fibonacci 38.2%: 78.15
    Previous Daily Fibonacci 61.8%: 78.02
    Previous Daily Pivot Point S1: 77.88
    Previous Daily Pivot Point S2: 77.57
    Previous Daily Pivot Point S3: 77.34
    Previous Daily Pivot Point R1: 78.43
    Previous Daily Pivot Point R2: 78.67
    Previous Daily Pivot Point R3: 78.97

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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