AUD/JPY picks up bids above 75.00, eyes RBA mintues, Lowe’s speech
- AUD/JPY stays firm around the six weeks high flashed the previous day.
- Data from Australia comes in weak, Japan CPI prints upbeat figures.
- Hopes of further stimulus, vaccine news previously favored the risk-on moves.
- Aussie bulls await policymakers’ discussion over the pandemic’s resurgence and any preparedness for that.
AUD/JPY remains on the front foot around 75.28, near the highest since June 10, amid initial Asian trading on Tuesday. The quote refreshed the multi-day high on Monday as market sentiment cheered expectations of further stimulus from the US and Europe. Also favoring the pair were updates suggesting that the coronavirus (COVID-19) vaccine will soon be out.
While the European Summit is finally closer to 750 billion Euros of stimulus, with 390 billion Euros of allocation to grants, global markets remain positive as the regional aid was much-awaited for long. On the other hand, the US policymakers are also up for discussing another round of measures to combat the pandemic. Markets consensus suggests that the ruling Republican party has a less to offer, around $1.00 trillion, than the opposition Democrats that stays ready with over $3.0 trillions of aid packages.
Elsewhere, Oxford/AstraZeneca backed medicine becomes the second-one from the UK to mark upbeat results in the clinical trials. The vaccine joins the league of Gilead and Moderna to increase the odds of the cure to the deadly disease.
On the contrary, a sustained surge in the Australian virus figures becomes a cause of worry that was largely ignored by the pair traders. In doing so, the bulls concentrated on Wall Street gains.
Talking about the data, Japan’s Consumer Price Index (CPI) for June grew past-0.0% forecast to 0.1% on YoY while the CPI ex-Fresh Food crossed -0.1% expected and -0.2% prior with 00% mark. Further, National CPI ex-Food, Energy also followed the suit with a 0.4% mark versus 0.3% anticipations. On the other hand, Australia’s weekly prints of ANZ Roy Morgan Consumer Confidence slipped past-91.6 previous to 90.7.
Moving on, the pair traders will be interested in the RBA policymakers’ discussion over any measures to combat the further spread of the pandemic in Australia. Following that, the RBA Governor Philip Lowe will be closely watched to see whether the policymaker remains hawkish or not.
Technical analysis
Unless witnessing a decline below 75.00, the bulls can keep aiming for June 10 top near 75.60 ahead of targeting the previous month’s top near 75.80.
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.
