10 Jul 2013
AUD/JPY risking to dive back into old range
FXstreet.com (Barcelona) - AUD/JPY exchange rate is finding it hard to hold its recent gains after the grim trade data out of China, with the rate presently sitting up at 92.40 support.
China's exports and imports hit the AUD/JPY
Broad-based weakness in the Australian Dollar has been the main theme for the last hour, as China slows down its trading activity significantly. Earlier on the session, Sean Callow, FX Strategist at Westpac, had warned clients about "plenty of scope to surprise" on the data after the crackdown in fraudulent invoicing last May.
Following Callow's comments, China Customs Administration spokesman Zheng Yuesheng crossed the wires to say "the trade data may reflect true picture after crackdown on speculative inflows", while also adding that "outlook for exports in Q3 is grim."
Upside range break to reverse?
While the upside break on the AUD/JPY seemed to be legitimate after the distal close away from former 92.45 former resistance, the renewed rush of outflows in the Australian Dollar has brought this latter back in focus, with a break lower risking further choppy conditions within old range.
China's exports and imports hit the AUD/JPY
Broad-based weakness in the Australian Dollar has been the main theme for the last hour, as China slows down its trading activity significantly. Earlier on the session, Sean Callow, FX Strategist at Westpac, had warned clients about "plenty of scope to surprise" on the data after the crackdown in fraudulent invoicing last May.
Following Callow's comments, China Customs Administration spokesman Zheng Yuesheng crossed the wires to say "the trade data may reflect true picture after crackdown on speculative inflows", while also adding that "outlook for exports in Q3 is grim."
Upside range break to reverse?
While the upside break on the AUD/JPY seemed to be legitimate after the distal close away from former 92.45 former resistance, the renewed rush of outflows in the Australian Dollar has brought this latter back in focus, with a break lower risking further choppy conditions within old range.