AUD/JPY continues to push higher toward 84.10 on improved risk sentiment
|- AUD/JPY extends the previous three session’s gains on Thursday.
- AUD remains grounded on improved risk appetite, upbeat economic outlook.
- Yen suffers from downbeat economic data.
After posting strong gains in the previous three sessions, AUD/JPY is moving in a close trading band in the Asian session. The cross is struggling near the 84.10 mark, now support-turned-resistance level.
At the time of writing, AUD/JPY is trading at 84.09, up 0.07% for the day.
Investors remain unfazed by the US higher inflation expectations among Fed officials. The mixed responses from the policymakers fail to provide any meaningful traction in the US dollar. The improved risk sentiment helps Aussie gains.
It is worth noting that S&P 500 Futures were trading at 4,239, up 0.18% for the day.
Iron ore prices gained after dropping to a two week low of $210.5 per tonne, after China’s top economic planning agency said it would probe malicious speculation in the iron ore market Higher commodity prices helped commodity-linked AUD to gain against the majors.
On the economic side, the data showed on Wednesday that the IHS Markit Manufacturing PMI fell to 58.4 in June. The Composite PMI decreased to 56.1 in June from 58.0 in the previous month. However, this reading reflected the expansion in the private sector’s business activity, albeit at a slower pace than it did in May.
On the other hand, the yen remained submissive to the dismal economic data. The Jibun Manufacturing PMI fell to 51.5 in June from 53.0 in the previous month.
A slower vaccination rollout program and lockdown restriction kept the currency pressurized, despite the policymaker's optimistic economic outlook as revealed in the Minutes of Meeting of the Bank of Japan’s (BOJ) latest monetary policy.
The market dynamics continue to influence the pair’s performance in the absence of any major fundamental news.
AUD/JPY additional levels
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