AUD/JPY nears 78.00 handle after China reports dismal exports figure

AUD/JPY pair dropped to near 78.00 levels after the dismal China trade data knocked out risk sentiment and led to a surge in Japanese Yen.

Offered near 79.00

The cross was offered near the week long resistance level of 79.00 and was alredy trading on a weak footing prior to China data release. The bid tone around JPY strengthened after China reported a 5.6% drop (in Yuan terms) in exports in September. The trade surplus narrowed to CNY278.4 billion in September from CNY346.0 billion in August.

Meanwhile, the weak export figures is also weighing on the Aussie dollar, thus making it difficult for the AUD/JPY cross to hold ground. The currency pair clocked a low of 78.07 before recovering slightly to trade around 78.23 levels.

AUD/JPY Technical Levels

A breakdown of support range of 78.00 (zero figure) - 77.83 (100-DMA) would expose 50-DMA level of 77.46, under which another psychological support at 77.00 stands exposed. On the higher side, 5-DMA of 78.36 if breached could yield a retracement to critical resistance level of 79.00. A daily close above the same would open doors for 200-DMA level of 80.21.