AUD/JPY slammed to 88.60 on renewed N. Korea risks
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The cross in AUD/JPY ended its brief consolidative mode and broke further to the downside, after the safe-haven Yen picked-up strength across the board on fresh warning of North Korea testing a hydrogen bomb in the Pacific.
AUD/JPY back below 89 handle
A renewed risk-aversion wave gripped the markets, as North Korea risks returned to markets, boosting the safe-haven flows for the Yen at the expense of higher-yielding risk currencies such as the Aussie.
The cross extends it’s sharp reversal from nearly two-year tops of 90.31, as the risk barometer comes under aggressive selling pressure on the latest warning over North Korea’s nuke threat, which continues to weigh negatively on the overall market sentiment.
Meanwhile, the Aussie remains weaker amid Australia’s rising household debt risks, however, broad based US dollar retreat from FOMC-led rally could offer some respite to the AUD/USD pair.
Markets will continue to keep an eye over the North Korean news amid a lack of key fundamental drivers due on the cards today.
Technical Levels
Higher side: 89 (round figure), 89.25 (5-DMA), 89.46 (daily pivot)
Lower side: 88.50 (psychological levels), 88.02 (classic S2/ Fib S3), 87.51 (50-DMA)
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