Home AUD/JPY remains resilient near 71.90 despite dismal Aussie trade data
FXStreet News

AUD/JPY remains resilient near 71.90 despite dismal Aussie trade data

  • AUD/JPY remains mildly bid near 71.90 despite the dismal Aussie trade data.  
  • Australian trade surprlus narrowed more than expected in August.  
  • The uptick in the S&P 500 futures is likely saving the day for the AUD/JPY bulls.  

AUD/JPY is barely moving in response to the weaker-than-expected Australian trade data released soon before press time.  

The currency pair continues to trade around 71.90 – the level seen before Australian data – having hit a low of 71.75 in the early Asian trading hours.  

Australia’s August trade surplus came in at A$5,926 million, missing the expected figure of A$ 6,000 and down from the previous month’s print of A$7,268 million.  

Exports or outbound shipments dropped 3% in August, having risen by 1% in July and imports growth stalled in August, having risen by 3% in the preceding month.  

The decline in exports isn’t surprising, given the US-China trade war and rising protectionism in the global economy. Meanwhile, the slide in imports underscores weak domestic demand and validates the Reserve Bank of Australia’s rate cuts.  

As a result, the AUD/JPY pair may come under pressure during the day ahead – more so, if the futures on the S&P 500 report losses. As of writing, the S&P 500 futures are reporting a 0.15% gain.  

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.