AUD/JPY nears 1-hour 100-MA ahead of China data
|The bid tone around the AUD/JPY gathered steam in Asia, pushing it above 86.50 [38.2% Fib R of 81.78-89.42] levels and near 1-hour 100-MA level of 86.63 levels.
Focus on China data
Retail sales are seen rising 10.8% y/y in July vs. previous month’s reading of 11.0%. Industrial production is seen slowing sharply to 7.2^ y/y vs. previous month’s figure of 7.6%. The Aussie could cheer strong data and vice versa.
Furthermore, an upbeat data could also strengthen the risky assets and weigh over the Japanese Yen.
AUD/JPY Technical levels
On the 1-hour chart, the cross has breached a descending trend line sloping downwards from Aug 8 high and Aug 9 high. The pair currently trades around 86.52 levels. A break above 86.63 [1-hour 100-MA] would open up upside towards 87.10 [Aug 9 high] and 87.22 [1-hour 200-MA].
On the downside, breach of support at 86.23 [50-DMA] would expose 86.00 [zero figure], under which a major support is seen directly at 85.45 [previous day’s low].
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