AUD/JPY fades spike above weekly 200-MA
|AUD/JPY backed-off from the daily high of 88.74 and now trades around the weekly 200-MA level of 88.45 after China data missed estimates by a big margin.
China August industrial production came-in at 6.0% y/y, missing the estimate of 6.6% by a big margin. Retail sales printed at 10.1% y/y vs. expected 10.5%. Meanwhile, China commerce ministry said, "irrational overseas investment has been effectively controlled."
The Aussie 10-year government bond yield trimmed gains, but still trades almost 6 basis points [bps] higher on the day at 2.734%.
The currency pair clocked a high of 7-week high of 88.74 earlier today after Australia reported stellar jobs report.
AUD/JPY Technical Levels
A break above 88.74 [session high] would lift the AUD/JPY cross to 90.00 [psychological levels], above which a major hurdle is seen directly at 90.72 [Nov 2015 high]. On the downside, breach of support at 88.00 [zero levels] could yield a pull back to 87.59 [10-DMA] and 87.43 [50-DMA].
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