- Australia reported a weaker-than-expected April trade surplus as exports dropped.
- AUD/JPY risks deeper pullback as weak data could bolster the bearish intraday technicals.
Australia reported April trade surplus at AUD 977 million, , down from AUD 1.5 billion in March. The markets were looking for a surplus of AUD 1 billion.
Exports dropped 2 percent in April following a 1 percent rise in March. Meanwhile, imports growth stalled, as opposed to 1 percent rise in March.
The pair already on the back foot ahead of the data release (down from 84.52 to 84.35) and risks falling further towards the 84.00 mark as the weak data gels well with the bearish price-relative strength index (RSI) divergence seen in the hourly chart.
As of writing, the pair is trading at a session low of 84.27.
AUD/JPY Technical Levels
Resistance: 84.54 (session high), 84.86 (Feb. 21 high), 85.41 (200-day moving average)
Support: 83.94 (April 19 high), 83.83 (5-day moving average), 83.06 (10-day moving average)
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