AUD/JPY remains unfazed despite upbeat China trade balance data

• China trade balance and exports beat forecasts while imports slipped beneath expectations.
• Australian holiday restricts the market response to data.
• Risk events in the spotlight for fresh impulse.

Even after witnessing welcome trade numbers from China, AUD/JPY remains modestly unchanged near 75.78 during early Monday.

Holiday at Australia coupled with seems restricting the effect of data from its largest customer China. The May month trade surplus crossed market consensus on both USD and CNY terms. The trade balance figure marked 279.10 billion in Yuan terms against 140.50 billion forecast and 93.57 billion prior while its USD counterpart rose to $41.65 billion beating $20.50 billion market consensus and $13.83 billion previous.

Details suggest that imports contracted more than expectations while exports crossed the consensus.

The global market was previously respecting latest trade positive news to portray risk-on sentiment.

The 10-year US treasury yield, followed as macro risk gauge, remains in positive territory to 2.117% by the press time.

It should also be noted that Japan’s first quarter (Q1) gross domestic product (GDP) data earlier rose past-0.4% forecast and +0.5% prior to +0.6%.

With no major data on the economic calendar and Australian holiday, investors may now focus on risk events to determine near-term trade sentiment.

Technical Analysis

Unless clearing 76.30/40 area including mid-May highs, the quote is less likely to aim for 76.80 and 77.00, which in-turn highlights 75.30 and 75.00 as nearby supports.