- Westpac consumer confidence grew 1.9% but couldn’t beat the cautious mood in the market.
- Speech from RBA’s Debelle and other risk events will provide a fresh impulse to traders.
AUD/JPY trades little changed near 79.20 during early Wednesday as markets give little importance to the recently published Aussie consumer confidence data amid cautious mood ahead of the key events scheduled for the day.
The quote dropped the previous day as markets turned cautious after the recent trade spat between the US and the EU.
10-year US treasury yield, a barometer of market risk sentiment, trimmed two basis points to trade near 2.50%.
During early-day, news reports suggesting the evening’s trade talks between the US and Chinese lawmakers initially helped the pair when the Japanese data flashed weak signals. Though, overall risk-off remained in command despite Australia’s welcome consumer confidence data.
Japan’s Core machinery orders slid past-2.5% forecast to 1.8% on MoM basis during February whereas the Westpac consumer confidence for April grew +1.9% against 4.8% prior.
While comments from the Reserve Bank of Australia’s (RBA) Assistant Governor, Guy Debelle, can act as an immediate catalyst for the pair, key risk events like developments concerning the US-China trade deal and EU summit could dominate trading moves then after.
AUD/JPY Technical Analysis
50-day simple moving average (SMA) and a fortnight-long upward sloping trend-line can offer immediate support around 79.00 – 78.90, a break of which can recall 78.45 and 77.70 on the chart.
On the flipside, the pair should clear 79.65/70 resistance to question February highs near 79.80/85 while aiming for 80.00 and 200-day SMA level of 80.30.
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