The Australian Dollar plunged while the safe-haven Japanese Yen pushed higher to start the trading week in the wake of a dramatically disappointing set of Chinese Trade Balance figures reported over the weekend.
The report showed a monthly deficit of -$22.99 billion, marking the first negative reading in 11 months and the largest since February 2012. The plunge in exports was particularly dramatic, with overseas sales down -18.1% year-on-year to produce the largest drawdown since August 2009.
China is Australia’s largest trading partner and the dismal data set fueled concerns that a slowdown in the former country will reverberate in the latter, undermining the probability that the RBA’s next move might be an interest rate hike after the current period of stability.
AUD/USD, USD/JPY – 5min Chart
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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