AUD/JPY edges higher to near 98.80 amid positive Chinese PMI figures

AUD/JPY gains ground on encouraging Chinese PMI data.
Japanese Yen struggles after the expansion in Chinese manufacturing activity.
RBA Meeting Minutes will be released on Tuesday to offer insights into the central bank's future policy direction.

Akhtar Faruqui FXStreet

AUD/JPY appreciates to near 98.80 during the European session on Monday, potentially supported by positive Chinese Purchasing Managers Index (PMI) figures. The close trading relationship between China and Australia likely contributes to this correlation.

Moreover, the safe-haven Japanese Yen (JPY) may have encountered negative sentiment as investor confidence was buoyed by the first expansion in Chinese manufacturing activity in six months, observed in March.

China’s Caixin Manufacturing PMI was reported at 51.1 on Monday, surpassing expectations of 51.0 and exceeding the previous reading of 50.9. Before that, on Sunday, China's National Bureau of Statistics (NBS) released data showing that the Manufacturing PMI rose to 50.8 in March from 49.1 in the prior month. Additionally, the Non-Manufacturing PMI increased to 53.0 in March from 51.4 in February.

Former BOJ official Tsutomu Watanabe has indicated that the next rate hike in Japan might not materialize until October at the earliest. According to an assessment reported by Bloomberg (gated), Watanabe foresees the BoJ adopting a cautious, data-driven approach, primarily due to concerns surrounding Yen depreciation.

However, the Australian Dollar (AUD) might have struggled due to weaker Consumer Inflation Expectations, which could suggest expectations for interest rate cuts by the Reserve Bank of Australia (RBA) in late 2024. Investors are anticipated to closely scrutinize the release of the RBA Meeting Minutes scheduled for Tuesday to gain insights into the central bank's stance and future policy direction.

AUD/JPY

Overview
Today last price	98.75
Today Daily Change	0.13
Today Daily Change %	0.13
Today daily open	98.62

Trends
Daily SMA20	98.27
Daily SMA50	97.82
Daily SMA100	97.37
Daily SMA200	96.15

Levels
Previous Daily High	98.8
Previous Daily Low	98.47
Previous Weekly High	99.25
Previous Weekly Low	98.18
Previous Monthly High	100.17
Previous Monthly Low	96.9
Daily Fibonacci 38.2%	98.67
Daily Fibonacci 61.8%	98.6
Daily Pivot Point S1	98.46
Daily Pivot Point S2	98.3
Daily Pivot Point S3	98.12
Daily Pivot Point R1	98.79
Daily Pivot Point R2	98.96
Daily Pivot Point R3	99.13

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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