AUD/JPY clocks fresh session low after China data

AUD/JPY extended losses to a fresh session low of 86.34 after China reported a surprise trade deficit for February. 

Dips below Trend line support 

The pair has breached the support offered by the trendline (drawn from Dec 29 low and Feb 7 low) at 86.42 levels. China reported a trade deficit of CNY 60.4 billion. Markets were expecting a surplus of CNY 172.5 billion. 

In the meantime, losses in the US and Asian equity indices strengthened the bid tone around the Japanese Yen. China data is unlikely to have a major impact during the rest of the day as February number is usually skewed by the Lunar New Year holiday. 

AUD/JPY Technical Levels

A break above 86.54 (10-DMA) would expose 86.91 (previous day’s high) and 87.09 (Jan 27 high). On the other hand, a breakdown of support at 86.16 (Mar 6 low) would open doors for a sell-off to 86.09 (50-DMA) and 85.85 (Feb 28 low).