AUD/JPY rally stalls after China trade data release

Weak Chinese export growth in December seems to have taken a wind out of the Aussie bulls. 

The AUD/JPY cross clocked an intraday high of 86.28 ahead of the data release and was last seen trading around 86.10 levels. 

Trade situation continues to face difficulty - China Customs

Exports in CNY terms dropped 2% y/y, compared to the expected drop of 3.5%. The slide in exports is not a real issue, given the anaemic global demand. 

The real cause of concern is 0.6% y/y growth in imports, which was well short of the expected figure of 2.7%. The poor performance of imports represents weak domestic demand and suggests the rebalancing process is still far from done. 

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 supply 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). 

15M Slightly Bullish Neutral High
1H Bullish Overbought Expanding
4H Bearish Neutral Shrinking
1D Bearish Neutral Low
1W Slightly Bullish Neutral High


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.