AUD/JPY: Flashing gains despite risk-off news, 5-day MA caps gains
|- AUD/JPY is reporting gains amid tensions in the Middle East.
- The 5-day moving average (MA) is capping the upside.
- China kept one-year and five-year loan prime rates unchanged.
AUD/JPY is reporting marginal gains at press time, despite tensions in the Middle East, although the upside is being capped by the descending 5-day moving average (MA) at 75.85.
Iraq temporarily halted production on Sunday amid widespread unrest. Meanwhile, Libya's National Oil Corp. declared force majeure after Commander Khalifa Haftar blocked exports at ports under his control, according to Bloomberg.
As a result, oil prices gapped higher in Asia. Even so, the anti-risk Japanese yen failed to draw bids, allowing the AUD/JPY cross to rise from 75.63 to the 5-day MA hurdle at 75.85.
The pair eked out gains, possibly on expectations for peace to prevail in Libya. Following the Commander's Haftar's powerplay, global leaders met in Berlin and agreed that no external forces will be entertained and major powers are "fully committed" to a peaceful resolution in Libya.
China keeps rates unchanged
The People’s Bank of China (PBOC) was out on the wires a few minutes before press time, informing markets about its decision to keep the one-year loan prime rate (LPR) unchanged at 4.15% this month, contradicting expectations for a cut to 4.10%.
Meanwhile, the central bank also left the five-year LPR unchanged at 4.80% in January.
So far, however, the rate decision has not had any impact on the Aussie pairs.
Technical levels
AUD/JPY is looking heavy, having faced rejection above 76.00 for the fourth straight day on Friday.
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.