AUD/JPY hovers at one-month high ahead of China data

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).

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bearish Oversold High
1H Slightly Bullish Overbought Expanding
4H Bearish Neutral Shrinking
1D Bullish Neutral Low
1W Bearish Neutral High