- AUD/JPY remains muted in the Asian session.
- AUD limit gains amid risk-off mood and trade dispute with China.
- Yen suffers from a fragile economic outlook and BOJ measures.
AUD/JPY edges lower on Tuesday morning in the Asian session. After posting strong gains in the previous session, the pair seems to be consolidating gains near the higher levels.
At the time of writing, AUD/JPY trades at 83.04, down 0.10% for the day.
Investors continued to digest the US Fed’s higher inflation and interest rate forecast, which came as a surprise to the market in the central bank’s latest monetary policy meeting.
On the economic side, the Retail Sales rose 0.1% in May, much below the market expectations at 0.5%. However, the readings pointed out a slower growth rate in the previous three months.
Meanwhile, the escalating tensions between Australia and China prove to be a negative factor for the aussie. As reported, Canberra has dragged Beijing to WTO, after latter slap tariffs on Australind wine imports.
Rebound in commodity prices helped limit the downside for the pair. The higher commodity prices help commodity-linked AUD to gain against the majors.
It is worth noting that S&P 500 Futures were trading at 4,217, up 0.09% for the day.
On the other hand, the yen remained grounded by the mixed Fed's official voices over taper talks. However, on the domestic front, a slower vaccination rollout program and lockdown restriction kept the currency pressurized.
The market dynamics continue to influence the pair’s performance in the absence of any major fundamental news.
AUD/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.