Aussie bulls are being supported by a moderate uptick in the USD/JPY pair in Asia, thus pushing the AUD/JPY cross stays to one-month high of 86.22 levels.
Focus on China trade numbers
China trade surplus in US dollar terms is seen widening to $46.50 billion in December. Exports are seen falling 3.5%, while the imports are seen rising 2.7%.
The drop in the exports should not come as a surprise, although slowdown in the import growth (previous figure was 6.7%) is indicative of the fact that the rebalancing process is far from done.
A strong data could boost risk sentiment and AUD/JPY cross and vice versa.
AUD/JPY Technical Levels
A break above 86.61 (Dec 12 high) would expose resistance at 87.00 (zero figure), above which the cross may test offers at 87.53 (Dec 15 high). On the other hand, a failure to hold above 86.00 (zero levels) would open the doors to 85.70 (5-DMA) and then to 85.29 (10-DMA).
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