- AUD/JPY breaks a choppy range above 83.00 to the south.
- Australia’s weekly Consumer Confidence eases, Japan eyes lifting the state of emergency for areas outside Tokyo.
- Markets jostle between highest yields and hopes of US stimulus while waiting for US Fed Chair Powell.
AUD/JPY drops to 83.10 during its latest downside amid Tuesday’s Asian session. In doing so, the quote overcomes the recent choppy range surrounding 83.15-20. The pair recently ignored weekly consumer sentiment data from Australia but not news from Asahi suggesting Japan’s readiness to thrash virus-led emergency from Tokyo.
The quote jumped to the highest since December 2018 the previous day as market sentiment bolstered the coronavirus (COVID-19) vaccinations and unlock news from Israel and the UK.
Recently, Australia’s ANZ-Roy Morgan Australian Consumer Confidence dropped for the third consecutive week, to 109.02 versus 109.9 prior, but the quote paid a little heed to the news. However, Asahi news suggesting Japan’s plan to lift covid-led emergency from Tokyo seems to have helped the Japanese yen despite off in the Asian major.
It’s worth mentioning that the market’s cautious sentiment ahead of Federal Reserve Chairman Jerome Powell’s bi-annual testimony also weighs on the pair amid a lack of major data/events. The Fed Chair is mostly expected to reiterate his cautious optimism but any surprises can’t be ruled out considering the latest dovish comments from the ECB and mixed US data.
Read: The Week Ahead: Inflation and the Fed
Amid these plays, the S&P 500 Futures mark 0.10% intraday gains after technology shares and jump in Treasury yields drowned Wall Street the previous day. It’s worth mentioning that the bond yields are near a one-year high in the US and trigger reflation woes to challenge the sentiment off-late.
Moving on, a lack of major catalysts keeps the trades glued to the macro wherein the US covid stimulus may get enough attention ahead of Powell’s speech.
Technical analysis
Despite the latest pullback, the pair stays above the 83.00 threshold, not to mention that mid-month top of 82.41, which in turn directs the bulls toward the December 2018 peak surrounding 83.90.
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.