AUD/JPY loses the 84.00 handle as risk appetite disappears overnight

  • Aussie falls as the Yen gains amid broad market safety run.
  • Tillerson's ousting by Trump shakes market confidence.

The AUD/JPY tumbled in New York trading on Tuesday after lifting through the first half of the day and heads into Wednesday's session near 83.70 after bottoming at 83.54 near Tuesday's end. Markets saw a sudden flight to safety after US headlines confirming Trump fired his Secretary of State Rex Tillerson, taking the top off risk-based assets as broad markets fell.

A floor seems to have been found for now ahead of the Asian trading session, and the Bank of Japan's (BoJ) Monetary Policy Meeting Minutes along with Machine Orders figures for January are due at 23:50 GMT before the Tuesday rollover.

Australia has little data on the docket data except for the Westpac Consumer Confidence survey at 23:30, but Chinese data at 02:00 GMT early Wednesday could see an impact on the AUD. Chinese Retail Sales, Industrial Production, and Foreign Direct Investment figures all drop at the same time. Retail Sales are forecast to come out at 9.8% (previous 9.4%), Industrial Production is expected to see 6.1% (previous 6.2%), and Foreign Direct Investment was last seen at 0.3% for the previous figure.

AUD/JPY Technicals

A shooting star has formed on Daily candlesticks, bouncing neatly off resistance from the 34 EMA at 84.50, while H4 charts show the AUD/JPY cutting short a bullish play from last week's low of 81.48. Support is currently at the two previous swing lows, near 82.50 and the 82.00 level, with resistance at this week's early swing high of 84.10 and Tuesday's high of 84.50.

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