- AUD/JPY fails to keep the uptick to 75.00 after Aussie Unemployment Rate matches downbeat forecast.
- Market’s risk-tone dwindles amid recent worries concerning the Sino-American relations.
- A busy day ahead with Chinese GDP be the immediate catalyst.
AUD/JPY declines to 74.80 during Thursday’s Asian session. The pair recently seesawed around 75.00 after Australia’s June month employment data cited mixed figures. In doing so, the quote snaps the previous three-day winning streak.
While Aussie Employment Change crossed 112.5K expected with 210.8K, traders might have taken clues from Unemployment Rate that met market consensus of 7.4% versus 7.1% prior.
Read: Breaking: Aussie June employment beats expectations, AUD whippy in H&S formation
Earlier during the day, Foreign Investments in Japan Stocks for the period ended on July 10 rose from ¥-77 B to ¥+67.2 B with Foreign Bond Investment surging past ¥-520.7 B to ¥1065.7 B.
Talking about the risk catalysts, the pair recently shrugged off the escalation in the US-China tussle followed by signals that the Trump administration is considering sweeping sanctions on the key diplomats from Beijing. The news follows previous headlines indicating the US policymakers’ investigations of the Chinese apps and Beijing’s readiness to retaliate American interference in Hong Kong matter.
Furthermore, the surge in Victoria’s virus figures and fears of further hardships in Tokyo residents, after the highest alerts due to the pandemic, added to the risk reset.
As a result, the market’s previous optimism, backed by hopes that the COVID-19 vaccine, seems to fade and the same could be witnessed in S&P 500 Futures’ pullback from the late-February top. Also portraying the shift in trading sentiment are mild losses by Japan’s Nikkei 225 and Australia’s ASX 200.
Moving on, traders will keep eyes on China’s data dump, including second quarter (Q2) GDP, June month Industrial Production and Retail Sales, for immediate direction. Although forecasts suggest further recovery of the AUD/JPY prices, any disappointment from the data will not be taken lightly and can add a burden to the market’s risk sentiment.
Technical analysis
An upward sloping trend line from June 12 and 21-day SMA increases the importance of $74.25 as the key support. On the contrary, bulls move gradually towards June month’s top of 76.79 with 75.00 and 75.60 acting as intermediate halts.
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.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.