AUD/JPY middles on off-kilter China Trade Balance figures
- China's Trade Balance printed deceptively positive, and the Aussie has frozen in place for the time being.
- A steep decline in Chinese imports has fueled the better-than-expected Trade Balance bump, keeping the overall reading mixed.
The AUD/JPY is unmoved by China Trade Balance figures, with underlying import and export figures eating away at the positive reading for China's trade balance.
China's Trade Balance in USD terms swelled to $41.6 billion, compared to the $27.6 billion forecast, but the Aussie is seeing little help from the positive reading, with a steep decline in Imports (+14.1%, forecast +20.8%, last +26%) creating the imbalance, rather than an outright improvement in the headline figure. Exports also lifted+11.3%, versus the expected +10.0% and last reading of 12.6%.
The Aussie remains stalled near 83.50 against the JPY as markets grind through Friday's early session, but the AUD is maintaining a recovery stance against the safe-haven Yen, extending Thursday's recovery from recent lows.
AUD/JPY levels to watch
The pair's recent bullish turnaround sees familiar resistance at previous swing points, from the April swing high at 83.95 to June's peak at 84.50. Support is building in from the last swing low at the 82.00 major level, with June's swing lows at 80.70.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
