AUD/JPY off-highs, around 83.00 as risk-off returns
The AUD/JPY cross wiped-out gains and fell back into the red zone near 83 handle, following the release of mixed Australian datasets.
The Australian PPI data better estimates, arriving at 0.5% in the reported month, versus 0.3% expectations, while the private sector credit data disappointed, coming in at 0.3% versus 0.5% estimated.
Moreover, the cross came under renewed selling pressure, as the yen regained ground amid moderate risk-aversion persisting in Asia, with the Asian indices trading in negative territory.
Also, the yen markets appear to ignore a slew of mixed Japanese macro news, and continue to benefit from risk-off trades, weighing down on the AUD/JPY cross.
Next of relevance for the cross remains the US GDP data due later in the NA session. In the meantime, risk trends will play a crucial role.
Technical Levels
Higher side: 83.84/81 (classic R2/ Apr 25 high), 84.47/50 (Apr 5 high/ psychological levels), 85 (round number)
Lower side: 82.72 (20 & 10-DMA), 82.28 (classic S2/ Fib S3), 82.00 (key support)
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
