AUD/JPY bounces-back towards 89.00, risk-on back in vogue?

Shrugs-off mixed Aus jobs and Chinese data
Focus shifts to BoJ policy decision.

Dhwani Mehta FXStreet

The cross in AUD/JPY is seen making headways back towards the 89 handle, having found fresh buyers just ahead of the 88.50 barrier, where the daily pivot intersects.

AUD/JPY trades above all major DMAs

The recovery in the spot from the Aussie jobs induced drop to 88.40 levels gathered steam, following the release of the Chinese GDP figures, which surprised markets to the upside by steadying at 6.8% in Q4 while the GDP YTD Dec 2017 y/y came in at +6.9% vs +6.8% expected.

Moreover, the cross also derives support from the renewed weakness seen in the Japanese currency against its American counterpart amid a turnaround in risk sentiment, as reflected by an upturn in oil prices and mostly higher European equities.

Attention now turns towards the US Philly Fed manufacturing, housing, and jobless claims data for fresh impetus ahead of next week’s BoJ monetary policy decision.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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