AUDJPY Looks Set To Gain Pace

Key Highlights

• Aussie Dollar traded higher against the Japanese Yen, and might continue to move in the near term.

• Japanese New orders, released by the Cabinet Office registered an increase of 16.6% in June 2015 whereas the expectation was of 16.4%.

• In New Zealand, the Business NZ PMI released by the Business NZ declined to 53.5 from the last revised reading of 55.1.

• In the UK, the RICS Housing Price Balance survey released by the Royal Institution of Chartered Surveyors posted a reading of 44%, more than the forecast of 42%.

AUDJPY Technical Analysis

The Aussie Dollar showed some positive signs, as it traded higher against a basket of currencies, including the Japanese Yen. The AUDJPY pair managed to clear a couple of major hurdles on the hourly chart, which include a bearish trend line, the 100 and 200 hourly simple moving averages. The pair is currently trading below the 92.0 resistance area, and if buyers manage to clear it more gains are possible.

On the downside, the broken trend line and 100 plus 200 SMA might act as a support area for the pair. So any correction from the current levels could find buyers on the way down.

Asian Recap - New Zealand Business PMI

Earlier during the Asian session, the New Zealand Business PMI, which presents business conditions in New Zealand and is an important indicator of the overall economic condition was released by the Business NZ. The market was not expecting any major change from the last reading of 55.2 in July 2015.

However, the outcome was lower than the market expectation, as the New Zealand Business PMI came in at 53.5. Moreover, the last reading was revised down to 55.1.