Aussie had a slightly positive day despite a surprise drop in the trade data to post a -A$122 million deficit (MNI Median forecast was a A$300 million surplus), with exports down 1% and imports up 2%. Prior to the data the currency was in a holding pattern at $0.9270/78, and quickly dropped to post the session low at $0.9259. Soon after the HSBC Chinese Services PMI dipped slightly to 50.7 in May from 51.4, but markets shrugged off that news and began to follow the weaker USD against the Yen in particular. Sellers have been seen above $0.9290 to $0.9300, where yesterday’s Asian top was reached, and as the AUD topped out at $0.9289, USD/JPY also finally found a base at Y102.45. Aussie now sits up 9bps at $0.9286 with solid resistance seen just above ahead of the ECB. Stops remain below at the $0.9220, $0.9200 and $0.9180 levels and topside above $0.9335. Sellers seen around $0.9290/00 and $0.9330, small buyers seen at $0.9250, then around $0.9200/10.
