AUD/JPY sees an upside above 94.00 on escalating Japan-North Korea tensions
|- AUD/JPY aims to establish above 94.00 as yen bulls may face volatility on geopolitical tensions.
- In response to North Korean missile tests, Japan military has formed drills with defensive agenda.
- Australian Trade Balance will be the major trigger for further guidance.
The AUD/JPY pair is gathering momentum to cross the immediate hurdle of 94.00 as the yen bulls are expected to face volatility amid ongoing tensions between Japan and North Korea. The market sentiment is expected to remain negative as the continuous firing of missiles from King Jong-un's economy is discarding Japan’s harmony.
In the past ten days, North Korea has fired more than five rounds of missiles. Tensions between Japan and North Korea scaled when it flew a missile for the first time since 2017. The unavailability of a prior warning has tangled things and forced the Japanese administration to conduct military exercises with a defensive agenda.
For now, investors are keeping an eye on Australian Trade balance data, which could be a meaningful trigger for further guidance. As per the projections, the Australian Bureau of Statistics will report the monthly Trade Balance for August month at 10,500M vs. the prior release of 8,733M. The projections indicate that trading activity has spurted in the Australian region, supporting the aussie bulls further.
While the AiG Performance of Construction Index for September has slipped to 46.5 vs. the prior release of 47.9 but didn’t make any major impact on the antipodean.
On Friday, the Japanese yen will dance to the tunes of Overall Household Spending data. An increment in the economic data indicates consumers' confidence in the economy. The economic data is seen higher at 6.7% against the former figure of 3.4%. This indicates that the retail demand has soared firmly and may also support the inflation rate to remain above 2%.
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