- AUD/JPY bears take a breather, following the heaviest drop in a week, near the lowest level since June 22.
- Market sentiment dwindles amid mixed signals from Fed, covid woes in Asia-Pacific and strong US data.
- China NBS Manufacturing PMI for June will be the key in Asia, macros keep the driver’s seat.
AUD/JPY defends the 83.00 threshold amid a subdued Asian morning on Wednesday. The cross-currency pair marked a two-day downtrend by the end of Tuesday by refreshing the weekly low amid Australia’s coronavirus (COVID-19) woes and sluggish market sentiment. The latest consolidation could be linked to the anxiety ahead of the key data from Australia’s biggest customer China.
With nearly 4.0% of fully vaccinated Australians risking a widespread infection of the Delta covid variant, Aussie policymakers have announced activity restrictions covering around 80% of the national population. Even so, the government has been criticized on the grounds of inoculations and is tracing more clues of the pandemic, recently found one in Queensland.
The virus resurgence also probes economies in Indonesia, Malaysia and Thailand, not to forget South Africa and Brazil, with slower jabbing be the key risk.
Elsewhere, strong US consumer sentiment and housing data seemed to have backed the Fed Governor Christopher Waller’s hawkish comments on the Bloomberg TV interview. “In favor of tapering MBS before Treasuries, tapering MBS is an easier sell to the public as the housing market is hot,” said Weller per Reuters.
It’s worth observing that the US 10-year Treasury yields and Wall Street benchmarks have turned sluggish of late as traders await China’s June month PMI data as well as an early signal of Friday’s US Nonfarm Payrolls (NFP), namely US ADP Employment Change.
While forecasts suggest another downbeat figure from Beijing, likely weighing on the AUD/JPY prices, any upside surprises may help consolidate the latest losses.
Other than the data from the US and China, Japan’s covid woes and challenges to the BOJ’s easy money policy may also direct short-term AUD/JPY moves. However, major attention will be given to Friday’s US NFP as markets brace for Fed’s monetary policy adjustments.
AUD/JPY remains directed to the 83.30 horizontal support, comprising multiple levels since mid-February, unless crossing the 100-day SMA surrounding 83.95, also the previous week’s top near 84.25.
Additional important levels
|Today last price||83.04|
|Today Daily Change||-0.68|
|Today Daily Change %||-0.81%|
|Today daily open||83.72|
|Previous Daily High||84.2|
|Previous Daily Low||83.6|
|Previous Weekly High||84.26|
|Previous Weekly Low||82.14|
|Previous Monthly High||85.8|
|Previous Monthly Low||83.93|
|Daily Fibonacci 38.2%||83.82|
|Daily Fibonacci 61.8%||83.97|
|Daily Pivot Point S1||83.48|
|Daily Pivot Point S2||83.24|
|Daily Pivot Point S3||82.88|
|Daily Pivot Point R1||84.08|
|Daily Pivot Point R2||84.44|
|Daily Pivot Point R3||84.68|
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.