- A positive Trade Balance reading fails to cover an uneven slide in Australian import and export totals.
- Trade fears are back on the docket in a big way this week.
The AUD/JPY is trading steadily into 82.60 winding through Thursday’s Asian market session, little-moved despite a better-than-expected showing for the Aussie Trade Balance.
Australia’s Balance of Trade clocked in at $1.873 billion in AUD terms today, easily clearing the median market forecast of $900 million, though a lop-sided decline in both Imports (-1%, previous 3%) and Exports (3%, previous 4%) is contributing to the rise in Australia Trade Balance, leaving the positive reading with a deceptively weak underside.
Broader markets are also primarily focusing on US-China trade war headlines, with the US confirmed to be looking to bump a planned 10% tariff on $200 billion of Chinese goods to a much heftier level of 25%, bringing trade angst back into the mix for market sentiment and leaving riskier assets such as the AUD on notably weaker footing against the safe-haven JPY.
AUD/JPY Levels to watch
The Aussie has been slipping from the week’s highs of 83.25, though the pair is still managing to hold onto gains for the week, which opened near the 82.00 technical barrier, a major support point for recent swing lows, though bulls have been thus far unsuccessful in generating a convincing push into recent highs just below the 84.00 handle.
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