AUD/JPY trims gains after disappointing China data
|AUD/JPY declined a few pips from the session high of 86.61 to trade around 76.43 levels after the China industrial production and retail sales number missed estimates by a big margin.
China July industrial production came-in at 6.4% y/y, missing the estimate of 7.1% by a big margin. On similar lines, retail sales printed well below estimates at 10.4%. The bullish momentum in the AUD appears to have stalled after the disappointing China data, although the currency pair still remains well into the positive territory.
The Yen side of the story has weakened this Monday morning, given the Asian stocks got off to a positive start on fading prospects of a Fed rate hike later this year.
The uptick in the AUD/JPY suggests the European bourses may see a relief rally today. However, caution is still advised as geopolitical tensions persist.
AUD/JPY Technical Levels
A break above 86.60 [1-hour 100-MA] would open up upside towards 87.10 [Aug 9 high] and 87.22 [1-hour 200-MA]. On the downside, breach of support at 86.23 [50-DMA] would expose 86.00 [zero figure], under which a major support is seen directly at 85.45 [previous day’s low].
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