AUD/JPY Price Analysis: Ignores China PMI to ease from immediate resistance line above 75.00
- AUD/JPY sellers attack 75.00 after taking a U-turn from a three-day-old falling trend line.
- China’s July month official PMIs flashed better than forecast data, Aussie PPI weakened for Q2.
- A confluence of 200-HMA, 38.2% Fibonacci retracement adds to the upside barriers.
AUD/JPY drops to 75.19, down 0.20% on a day, during the early Friday. The pair recently reacted to Australia’s Producer Price Index (PPI) data for the second quarter (Q2). In doing so, it ignores China’s PMI data for July.
Australia’s Q2 PPI slips below +1.3% YoY forecast and prior to -0.4% while the QoQ figures defy 0.3% market consensus and 0.2% previous readouts with -1.2% data. Earlier, China’s NBS Manufacturing PMI surged past-50.7 forecast and 50.9 earlier readings to 51.1 whereas Non-Manufacturing PMI crossed 51.2 expectations with 54.2 figures.
With the pair’s failure to cross the immediate resistance line, coupled with downbeat data at home and a broad risk-off, the AUD/JPY prices may continue staying pressures. As a result, 75.00 could lure the sellers ahead of highlighting the weekly bottom surrounding 74.80.
During the quote’s further weakness past-74.80, the monthly trough close to 73.90 will be in the spotlight.
On the contrary, 200-HMA and 38.2% Fibonacci retracement of July 22-30 fall, around 75.60 will act as additional resistance beyond the said falling trend line around 75.45.
Should the quote remains positive past-75.60, 61.8% Fibonacci retracement level of 76.10 could challenge the bulls.
AUD/JPY hourly chart
Trend: Bearish
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.
