AUD/JPY struggles to regain 87.00, despite risk-on
|The AUD/JPY cross attempts a tepid-bounce from 86.81 lows as risk-on sentiment returned to markets and weighed heavily on the safe-haven demand for the yen.
Hence, the cross tracks the renewed uptick seen in USD/JPY after Macron’s first presidential debate win triggered a renewed risk-on wave. However, the bounce in AUD/JPY remains capped below 87 handle, as a steep drop in AUD/USD keeps a check on further upside.
The Aussie loses ground as markets remain unimpressed by the RBA minutes released earlier on the day, which offered nothing new, while tumbling copper prices add to the latest leg down in AUD/USD.
Later today, the cross will continue to get influenced by the broader market sentiment, as investors digest the latest French debate outcome ahead of the US current account data release.
Technical Levels
Higher side: 86.98/87 (5-DMA/ zero figure), 87.50/53 (psychological levels/ Mar 15 high), 88.17/23 (Feb 15 & 16 high)
Lower side: 86.57/50 (50-DMA/ key support), 85.85/80 (100-DMA/ Feb-end lows), 85.50 (psychological levels)
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