AUD/JPY - Uptick short lived ahead of the China trade data

AUD/JPY faded spike to 88.02 yesterday to end the day with marginal losses at 87.62, which is the 23.6% fib retracement of the rally from 81.78 to 89.42 levels. The cross remains flat lined in Asia as investors await China July trade data. 

The China trade surplus is due at 02:00 GMT

The data is expected to show the trade surplus narrowed only slightly to CNY 292 billion in July vs. 294.3 billion in June. A slight slowdown in the import and export growth is expected… 
In the US dollar terms, the surplus is seen widening to $46.08 billion in July from the previous month’s print of $42.77 billion. 

A better-than-expected trade may lift the Aussie dollar and vice versa. Yen side of the story would strengthen if the Chinese data stokes fears of a slowdown in the world’s second largest economy. 

NAB Confidence indicators due at 01:30 GMT

The uptick in the confidence and wage growth indicators could boost the Aussie dollar ahead of the China trade data. 

AUD/JPY Technical Levels

A break above 88.09 [10-DMA] would open doors for 88.70 [Aug 1 high] and 89.00 [zero figure] - 89.32 [July 20 high]. On the downside, support is seen at 87.52 [previous day’s low] would expose 87.35 [Aug  4 low] and 87.00 [July 4 high].