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AUD/JPY extends gains on above-forecast Aussie trade surplus

  • AUD/JPY jumps over 10 pips on the back of the better-than-expected Aussie trade data. 
  • Australia turns to economic reboot, boosts risk sentiment.

The already bid AUD/JPY is extending gains in response to the above-forecast Australian trade surplus data released at 01:30 GMT. 

Australia’s trade balance rose to A$ 10,602 million in March versus expectations for A$ 6,800 million, following February’s reading of A$ 4,361. The surplus rose as exports or outbound shipments increased by 15.1% and imports fell by 3.6%. 

The currency pair jumped 11 pips to hit a new session high of 68.11 following the release of the surplus data. The pair found bids at 67.63 in early Asia and rose to 68.00, possibly on optimism generated by Australia’s decision to relax coronavirus lockdown from Friday. The nation shut down its economy six weeks ago to contain the virus outbreak. 

While the reopening of the economy could have a cost – new clusters of infections may emerge just as the southern hemisphere heads into winter – most observers believe the nation has avoided the scale of sickness and death seen in the US and some European countries and is now best positioned in the world. 

The AUD/JPY cross could continue to gain altitude, as the futures on the S&P 500 are reporting a 0.30% gain at press time despite the escalating US-China tensions. China is scheduled to report Caixin Services PMI in a few minutes from now and trade data for April in the next few hours. 

Technical levels

 

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