AUD/JPY regains 76.00 despite coronavirus woes
|- AUD/JPY recovers from 75.90 to print three-day winning streak.
- Fears of further rise of virus cases in Australia battle hopes of additional stimulus form the US.
- BOJ’s Kuroda stays ready to act, Japan topped 1,300 new cases on Wednesday.
- A lack of key data/events will keep traders stuck searching for risk catalysts.
AUD/JPY takes the bids near 76.05, up 0.15% on a day, before traders in Tokyo begin Thursday. In doing so, the quote stays near the highest levels in a week while ignoring the latest surge in the Aussie figures of the coronavirus (COVID-19) cases. The reason could have lied in market expectations of further government helps from the US and Japan.
Fresh COVID-19 cases in Australia’s epicenter Victoria surged to the record high of 725 on Wednesday while The Australian spots secret modeling to suggest the number as high as 1,100 before peaking in late-August. On the other hand, Japan's daily number of confirmed cases crossed 1,300 with Tokyo contributing 263 numbers, which was below the one-week average of 346.3, per the Kyodo News.
While identifying the threat of larger than expected wave 2.0, BOJ Governor Haruhiko Kuroda showed readiness to alter monetary policy if needed whereas RBA policymakers have already rung alarms during the recent meet.
Even so, market sentiment stays positive as hopes of further stimulus from the US and Japan continue to propel equities. As a result, the S&P 500 Futures rise 0.1% to 3,320 while the US 10-year Treasury yields also stay positive near 0.55%.
As the economic calendar lacks details to entertain momentum traders, market players will observe clues for the US aid package and virus news for fresh impetus. As per the latest hint from American policymakers, Congress is most likely to deliver details of unemployment claims benefits before the lawmakers go on vacation during this weekend.
Technical analysis
Unless breaking the confluence of an ascending trend line from June 12 and 21-day SMA, near 75.30, bulls can keep aiming for July month’s top near 76.90.
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