AUD/JPY defends 76.4% Fib as NAB business conditions hit record high

The AUD/JPY pair found bids in Asia and moved above 86.60 (76.4% Fib R of 85.45-90.30) after the NAB reported the business conditions index at record highs.

Currently, the cross is trading at the session high of 86.70, having clocked a 2-1/2 month low of 86.46 earlier today. The positive move comes after three consecutive days of decline.

As of now, the market is not paying attention to the NAB measure of wage pressures, which eased back in October.  However, it could become the deciding factor once the investors are done pricing-in the upbeat headline number.

Also on tap is the Chinese industrial production and retail sales figure. AUD, being a proxy for China, is likely to gain altitude if the China data better estimates.

AUD/JPY Technical Levels

The daily chart shows a falling wedge pattern. The wedge resistance and support are 87.12 and 86.32. A break above 86.79 (Nov. 9 low) would open up upside towards 86.94 (5-DMA) and 87.12 (wedge hurdle). On the downside, breach of support at 86.60 (76.4% Fib R of 85.45-90.30) would expose 86.46 (session low) and 86.32 (wedge support).

 

 

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 securities. 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 Forex 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.