AUD/JPY: Bears eye 83.50 on Aus trade & China PMI miss

The Australian dollar remains on the back foot across the board following the release of dismal Australian trade balance and Chinese services PMI data, knocking-off AUD/JPY to fresh session lows of 83.60.

The Australian trade surplus narrowed in March and missed expectations, while the Chinese services PMI data for April fell for the fourth straight month, posting the weakest reading since May 2016.

The Aussie faced double whammy on the release of the above-mentioned macro news, while at the same time a fresh bout of risk-aversion gripped markets, prompting a retreating in USD/JPY from just below 113 handle.

The JPY bulls managed to fight back control as negative Asian stocks amid risk-aversion, boost the safe-haven flows in the yen.

Focus now shifts towards the US dataflow, as dust settles over the Fed outcome, with investors now gear up for the next big risk event due on Friday – the US NFP report.

Technical Levels

Higher side: 83.84/93 (5-DMA/ daily pivot), 84.47/50 (Apr 5 high/ psychological levels), 85 (round number)

Lower side: 83.37 (200-DMA), 82.93 (20-DMA), 82.28 (classic S2/ Fib S3), 82.67 (Apr 27 low)