AUD/JPY pays a little heed to upbeat Aussie Retail Sales
- AUD/JPY registers modest gains with no major changes after Aussie Retail Sales, Japan’s Jibun Bank Services PMI.
- Comments from Wuhan Chief, Washington Governor recently weigh on the risk.
- US President Trump reiterates call for Saudi-Russia pact.
- Virus headlines will be the key for near-term direction.
Despite better than forecast figures of Aussie Retail Sales, AUD/JPY remains mostly unchanged while taking rounds to 65.40 during Friday’s Asian session. The reason could be traced from Japan’s Jibun Bank Services PMI.
Australia’s February month Retail Sales grew beyond 0.4% forecast and prior -0.3% to +0.5% whereas Japan’s Jibun Bank Services PMI crossed 32.7 forecast with 33.8.
Read: Australia Retail Feb Sales: 0.5% MoM (expected 0.4%)
While everybody on the floor cheers China’s ability to conquer the virus, Communist Party Secretary of China's Wuhan says the risk of coronavirus resurgence in the city still high. Also weighing on the risk are comments from the Washington Governor that suggests an extension of statewide lockdown until May 04. It’s worth mentioning that the global virus cases have already crossed one million mark with the death toll rising beyond 50,000.
Earlier during the day, the global rating giant S&P affirmed its AA+ credit rating, with a stable outlook, for the US while also expecting the economic losses to offset in 2021.
Elsewhere, US President Donald Trump reiterated his earlier comments suggesting a pact between Russia and Saudi Arabia to cut the oil production, this time with 15 million barrels’ promise.
Amid all this, the market’s risk-tone turns heavy with the 10-year US Treasury yields teasing 0.60% mark, down two basis points, even if Japan’s Nikkei and Australia’s ASX 200 are mildly positive by the press time.
Given the lack of major data left for publishing amid the Asian session, except for China’s Caixin Services PMI, investors will keep eyes on the virus headlines for fresh impulse.
Technical analysis
Thursday’s bullish hammer keeps buyers directed towards 66.00 unless declining below 64.40.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
