AUD/JPY can't find the momentum to retake 84.00

  • Risk appetite is looking balanced this week as the Aussie and Yen struggle to make headway against each other.
  • Tuesday sees China data that could drive the broader Asia session.

The AUD/JPY is holding near 83.35 in the early Tuesday markets, heading into a densely-packed Asia session.

The pair traded mostly flat through Monday's action, continuing Friday's back-and-forth as markets cycle tightly in risk appetite, although last week's Middle East market tensions over Syria cooled off over the weekend and traders are unsure of how to play their next step.

The Aussie sees the Reserve Bank of Australia's (RBA) Meeting Minutes at 01:30 GMT, though much of what the RBA discussed was likely telegraphed by the RBA's Governor, Philip Lowe, at his last speech. Movement from the minutes is unlikely to develop, though traders will be keeping a close eye on the report to see if the RBA has budged from their wait-and-see position on monetary policy actions amidst middling economic data for Australia.

After that, the Asia theater sees a slew of Chinese data expected at 02:00 GMT, the most notable of which will be the quarterly GDP figures, with the quarter-on-quarter figure expected at 1.5 percent versus the previous reading of 1.6.

AUD/JPY Levels to watch

The pair has recovered steadily from a bottom of 80.50 in late March, but this has less to do with intrinsic strength in the Aussie and more about the Yen walking back from an overvalued position in the broader markets, and a successful scaling of last week's high at the 84.00 major handle will run into further resistance at March's high of 84.50, with support pricing in from the last swing low at 82.70 and further support from March's lows from 81.25 to 80.50.

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