- AUD/JPY remains pressured around February lows after five-day downtrend.
- Market sentiment worsens amid concerns relating to Delta covid variant and Inflation.
- US-China tussles add colors to the risk-off mood.
- Japan’s National Core CPI, RBA Minutes and PBOC are key events in Asia.
AUD/JPY holds onto bearish sentiment, despite a recent pause around 80.30, near the five-month low amid early Tuesday morning in Asia. The quote dropped the most in over a week to refresh multi-day low as risk appetite sours amid the coronavirus (COVID-19) fears and reflation woes. Also roiling the mood could be the fresh US-China tussles.
Risk aversion dominates…
Although Tokyo reported below 1,000 covid numbers for the first time in six days, per Kyodo News, extended local lockdowns in Australia and six-month high infections in the UK recall the virus fears back to the table. This time, the concerns are graver as the Delta strain of the original virus spreads faster and resists vaccines. While identifying this, the US issued a “do not travel” advisory for the UK, per Reuters, whereas British PM announces 10-day self-isolation after getting in contact with someone infected with the disease.
The virus woes challenge the economic transition and drown markets, putting a safe-haven bid under the US dollar and Japanese yen of late.
Not only the fears of the virus but the reflation concerns in the US and economic pessimism in Japan, considering the pandemic resurgence, also weigh on the sentiment. Furthermore, the White House formally attributes malicious software activity over Microsoft Exchange to China and adds to the Sino-American tussles, offering another downer to the mood.
Amid these plays, Wall Street benchmarks slumped by the end of the Monday and so do the US 10-year Treasury yields, refreshing five-month low following the heaviest drop in eight months.
Given the AUD/JPY pair’s risk-barometer status, the risk-aversion could keep weighing on the quote. However, Japan’s National Consumer Price Index for June, expected -0.1% YoY for June, followed by the monetary policy meeting of the People’s Bank of China (PBOC) and the Reserve Bank of Australia’s (RBA) latest monetary policy meeting, will be crucial to follow for fresh impulse.
Although Japanese inflation data may offer little entertainment to the AUD/JPY bears, likely dovish comments in the RBA minute and the PBOC may keep the pair directed to the south.
A clear downside break of 200-DMA, around 81.20 by the press time, directs AUD/JPY to the yearly low of 79.20.
Additional important levels
|Today last price||80.35|
|Today Daily Change||-1.09|
|Today Daily Change %||-1.34%|
|Today daily open||81.44|
|Previous Daily High||81.94|
|Previous Daily Low||81.35|
|Previous Weekly High||82.82|
|Previous Weekly Low||81.35|
|Previous Monthly High||85.2|
|Previous Monthly Low||82.14|
|Daily Fibonacci 38.2%||81.58|
|Daily Fibonacci 61.8%||81.72|
|Daily Pivot Point S1||81.21|
|Daily Pivot Point S2||80.98|
|Daily Pivot Point S3||80.61|
|Daily Pivot Point R1||81.81|
|Daily Pivot Point R2||82.17|
|Daily Pivot Point R3||82.4|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.