AUD/JPY: Bulls target 79.60/65 ahead of China trade balance

• The buyers targeting 80.00 need to clear 79.60/65 resistance-region.
• China trade balance will act as an immediate catalyst.

AUD/JPY is little changed around 79.50 during early Friday. The pair has been falling short of clearing 79.60/65 resistance-area amid global economic woes and sluggish inflation data from China. However, the quote is recovering off-late and may challenge the important resistance once again if China’s trade balance figures please the Australian Dollar (AUD) buyers.

Not only the International Monetary Fund (IMF) and International Energy Agency (IEA) but influential central-bank policymakers also recently conveyed their doubts surrounding the future global economic growth. As a result, investors focused less on commodities in search of risk-safety.

The global barometer of risk sentiment, 10-year treasury yield from the US, remained mostly unchanged during early-day around 2.5%.

While positive developments surrounding the trade deal between the US and China were limiting the AUD/JPY pair’s downside on Thursday, a mixed bag of inflation numbers from China, Australia’s largest customer, questioned the buyers.

Prices are recovering ahead of China’s March month trade numbers. Forecasts suggest the headline trade balance may rise from $4.08 billion (revised) to $7.05 billion. The YoY details are expected to offer an export growth of +7.3% versus -20.8% earlier contractions whereas Imports may register -1.3% figure against -5.2%.

It should also be noted that developments surrounding the US-China trade deal and also concerning the global economic risk might have their importance in moving the pair as well.

AUD/JPY Technical Analysis

If prices manage to cross 79.60/65 resistance, their rally to 79.75 and 80.00 can be expected whereas 200-day simple moving average (SMA) level on the daily chart as 80.30 could limit further advances.

Meanwhile, immediate ascending trend-line near 79.35, followed by 100-day SMA level near 79.20 may gain short-term traders’ attention while 50-day SMA level of 78.90 and 78.50 could entertain sellers afterward.