AUD/JPY Price Analysis: China PMI-led rebound approaches 92.00 support-turned-resistance
- AUD/JPY recovers from two-week low after strong China activity data for February.
- Previous support line from January 19 joins bearish MACD signals, steady RSI (14) to challenge bulls.
- Fresh selling needs a clear break of 91.30 to aim for 50-DMA.
AUD/JPY picks up bids to refresh intraday high around 91.80, reversing the initial fall to the fortnight’s low, as strong data from Australia’s key customer favor pair buyers during early Wednesday.
China’s Caixin Manufacturing PMI rose to 51.6 versus 50.2 expected and 49.2 for February. In doing so, the private manufacturing activity gauge traced the official numbers. Earlier in the day, China NBS Manufacturing PMI jumped to 52.6 compared to 50.5 market forecasts and 50.1 prior. More importantly, Non-Manufacturing PMI rallied to 56.3 versus analysts’ expectations of 49.7 and 54.4 previous readings.
With this, the cross-currency pair rises towards the support-turned-resistance line stretched from January 19, close to 92.00 by the press time.
The pair’s data-led bounce, however, lacks support from the MACD and RSI (14), as well as the GDP and inflation numbers from Australia. As a result, the AUD/JPY recovery remains doubtful.
Even if the AUD/JPY pair crosses the 92.00 hurdle, the 200-DMA level surrounding 93.15 appears a tough nut to crack for the bulls.
Alternatively, an immediate horizontal area near 91.30 precedes the 91.00 round figure and the 50-DMA support of near 90.95 to restrict the short-term AUD/JPY downside.
Following that, February’s low of 90.23 and the 90.00 psychological magnet will be in focus.
AUD/JPY: Daily chart
Trend: Limited recovery expected
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.
