AUD/JPY hits fresh 8-day lows as Aus trade disappoints

A bid miss on the Australian trade figures pushed the AUD/JPY further southwards, now printing fresh eight-day lows near 87.70 levels.

Australia's June trade balance disappoints, drop in exports weigh

The Aussie remains under pressure so far this session amid persisting risk-off trades and recent weakness in oil and iron-ore prices. Adding to this, downbeat Aus trade balance data propelled AUD/JPY to break below the key support located at 87.70 levels.

On the JPY-side of the story, the Yen remains broadly better bid, in the wake of negative performance seen on the Asian equities, despite a minor-recovery seen in the US dollar across the board.

Attention now turns towards the US jobless claims, ISM services PMI and Factory orders data due later on Thursday for fresh trading impetus.

Technical Levels

The cross was last seen trading at 87.69. On the lower side, breach of support at 87.59 (Jul 24 low) could yield a pullback to 87 (round number) and to 86.78 (Jul 13 low). A break above 88.03/07 (5-DMA/ daily pivot) would expose 88.21/30 (20 & 10-DMA) and 88.50 (psychological levels).