AUD/JPY remains pressured below 70.00 after Aussie Wage Price Index
|- AUD/JPY ignores Australia’s Q1 Wage Price Index.
- Risk aversion weighs on the pair, trade war with China, fears of virus resurgence are the main catalysts.
- RBNZ can offer immediate direction while qualitative catalysts to remain on the driver’s seat.
AUD/JPY seesaws around 69.30, down 0.06% on a day, after Australian data matched market consensus on early Wednesday. Even so, the pair remains pressured due to the broad risk aversion.
Australia’s first quarter (Q1) Wage Price Index matches 2.1% forecast, down from 2.2% prior, on YoY basis while also repeating 0.5% figures for QoQ.
Earlier during the day, Westpac Consumer Confidence for May gained 16.6% versus -17.7 prior. Though, the data failed to recall buyers, except for initial pullback, amid risk-off mood.
The global markets have been risk-averse off-late. The reason could be traced from China’s fight against the US and Australia. While the US seems to have an upper hand over the dragon nation, the Aussie PM Scott Morrison’s push for an investigation into the virus outbreak likely levied a ban on meat exports.
Elsewhere, the resurgence in the coronavirus (COVID-19) cases from Germany and Wuhan seems to flash an early warning to the Pacific nations that are cheering the full-fledged return.
Amid all these plays, US 10-year Treasury yields drop further below 0.70% to 0.66% whereas Japan’s NIKKEI and Australia’s ASX 200 also flashed losses of over 1.0% by the press time.
Given the lack of any major directives from either Australia or Japan for the rest of the day, the pair traders may keep eyes on the trade/virus updates for near-term direction.
Technical analysis
The pair’s recent pullback from the key EMA keeps sellers hopeful while targeting a confluence of 50-day EMA and 61.8% Fibonacci retracement of February-March fall, near 68.90/85. On the contrary, a daily closing beyond 100-day EMA level of 70.11 won’t be sufficient for the pair to aim for March month high of 71.52 as April peak near 70.20 will validate further upside.
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.