AUD/JPY clocks three-day high after Aussie trade data

The bid tone around the AUD strengthened, pushing the AUD/JPY to a three-day high of 86.27 after the data released in Australia showed the trade surplus in December rose to record highs.

Trades above 1-hour 100-MA

The pair was last seen trading just above the 1-hour 100-MA level of 86.13. A rebound in commodity exports pushed Australia’s trade surplus to a record high of $3.5 billion in December. That was a 72% rise from the upwardly revised November print of $2 billion.

The Aussie is on the fire and rightfully so, however, a potential drop in the USD/JPY below 113.00 levels on account of broad based USD weakness could make it hard for the AUD/JPY cross to extend gains.

AUD/JPY Technical Levels

Strong resistance is seen at 86.28 (Jan 13 high), which, if breached, would expose 87.09 (Jan 27 high). A violation there would expose 87.53 (Dec 15 high). On the other hand, a breakdown of support at 86.06 (5-DMA + 10-DMA) could yield a re-test of 85.83 (session low), under which a major support is seen at 85.20 (Jan 31 low).