- Australian Dollar enjoying a decent upside run not only against the US Dollar but also against the Japanese Yen.
- AUDJPY pair traded above the 83.00 level, and it looks set for more gains towards 84.0.
- Australian trade balance released by the Australian Bureau of Statistics registered a trade balance of -2,937M in Jan 2016.
- Exports rose by 1%, and imports declined by 1% in Jan 2016.
The Aussie dollar buyers continued to move higher against the Japanese yen and traded towards 83.50. There is a bullish trend line on the hourly chart of the AUDJPY pair, which is acting as a support area and may continue to do so.
The AUDJPY pair is currently finding resistance near the 83.60 area, but as long as the trend line and support area is intact more upsides are possible.
On the downside, a break below the trend line support may taka the AUDJPY pair towards the 50% Fib retracement level of the last leg from the 81.53 low to 83.64 high.
Australian Trade Balance
Earlier today, the Australian trade balance, which is the difference in the value of its imports and exports of Australian goods was released by the Australian Bureau of Statistics. The result was above the forecast, as the trade deficit came in at – 2,937M, less than the forecast of -3,100M in Jan 2016.
The report added that the ‘seasonally adjusted terms, goods and services credits rose $266m (1%) to $25,549m. Non-rural goods rose $184m (1%) and non-monetary gold rose $126m (10%). Rural goods fell $39m (1%) and net exports of goods under merchanting fell $2m (14%). Services credits fell $2m”.
Overall, the report positive and helped the Aussie Dollar and it looks like AUDJPY could move towards 84.00.