AUD/JPY ignores downbeat Australian Retail Sales to defend the bulls above 76.00
|- AUD/JPY remains mildly positive, extends pullback from 76.11, after Aussie data.
- Australia’s preliminary Retail Sales for June slipped below 7.1% forecast and 16.9% prior to 2.4%.
- Risk dwindles as clues of US stimulus join another round of precious metal surge to confront the coronavirus woes.
- Pandemic numbers from Victoria estimated to have surged further, US death toll likely marked the biggest single-day jump since early June.
AUD/JPY buyers shrug off the weaker than anticipated Aussie Retail Sales while picking up the bids near 76.25 during the Asian session on Wednesday. The quote surged the highest since June 08 during the early trading hours before easing on the coronavirus (COVID-19) woes. It’s worth mentioning that the bulls are cheering a four-day winning streak amid broadly risk-on sentiment.
The preliminary readings of Australian Retail Sales for June slipped below 7.1% expected to 2.4%. The key data also lagged the last month’s jump of 16.9%. Even so, the AUD/JPY prices remain bid after the announcement. Earlier during the day, Australia’s Westpac Leading Index for June crossed 0.19% prior with 0.44% whereas Japan’s preliminary Jibun Bank Manufacturing PMI rose past-39.6 expected to 42.6.
Read: Aussie Retail Sales June +2.4% MoM in another big swing outcome
Other than the downbeat data, fears the virus conditions in Victoria continues to worsen as the latest estimations suggest another +400 level of new cases.
Not only in Australia but the US pandemic figures are also anticipated to challenge the risk-on mood. The Guardian came out with the news, relying on the US Centers for Disease Control and Prevention (CDC) forecast, to say that up to 170,000 Americans could have died of COVID-19 by August 08.
On the brighter side, the US policymakers are inching closer to the much-awaited phase 4 stimulus after their European counterparts announced 750 billion Euros of help the previous day. Also, the surge in precious metals, in contrast to the US dollar’s declines, adds to the pair’s strength.
That said, the market’s risk-tone sentiment struggle for clear direction as the US 10-year Treasury yields seesaw around 0.60% while mild gains of the S&P 500 Futures confront losses of ASX 200 and Nikkei 225.
Looking forward, a lack of major data/events could keep the pair traders checking the news headlines for fresh impetus. In doing so, the virus and stimulus could be the keywords.
Technical analysis
Unless successfully breaking the recent high around 76.35, fears of the pair’s pullback to 75.00 can’t be ruled out. On the contrary, the pair’s further rise will aim for June month’s top near 76.80 ahead of targeting 77.00 round-figure.
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.