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 on the back of risk aversion in the US stock futures.
• A below-forecast China’s imports number is likely adding to the bearish tone around the AUD/JPY pair.

The AUD/JPY pair is fast losing altitude, as the dismal China trade number released a few minutes before press time has likely 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