AUD/JPY: Bounces off three-week low towards 83.00 as Australia’s NSW lifts covid restrictions
|- AUD/JPY picks up bids from multi-day low but challenges to sentiment weigh on the quote.
- Australia’s largest state by population lifts mask mandate, restrictions on social gatherings as well as eye 100% stadium capacity.
- BOJ minutes, Japan data couldn’t entertain traders amid falling US Treasury yields.
- Risk catalysts remain as the key driver, US bonds will be in the spotlight.
AUD/JPY sellers catch a breather around 82.62, down 0.14% intraday, amid early Wednesday. In doing so, the quote respects the recent coronavirus (COVID-19) activity announcement from Australia’s New South Wales (NSW). However, risk-off mood tests the recovery moves.
NSW announces substantial removal of the virus-led activity restrictions from Monday. Among many, turning down the masks and favoring 100% stadium capacity are the key to watch. The news helps the Australian dollar (AUD) as the Oz nation becomes the first to lift covid restriction after the UK.
On the other hand, Bank of Japan (BOJ) minutes and Japan’s upbeat Corporate Service Price Index and Jibun Bank Services PMI, respectively for February and March, failed to entertain the Japanese yen (JPY) buyers. The reason for the same could be traced from the US Treasury’s downbeat performance, currently declining three basis points (bps) to 1.60%.
Despite the upbeat announcements, the fears of a flood in the NSW and virus resurgence-led lockdown extensions in Europe join West versus China tussles to weigh on the risks. Even so, Australia’s ASX 200 rises 0.5% by the press time amid optimism at home.
Moving on, AUD/JPY traders will keep their eyes on the risk headlines for fresh impulse amid a light calendar.
Technical analysis
Sustained break of an ascending trend line from November 01, 2020 keeps AUD/JPY bears hopeful.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.