AUD/JPY remains bid to attack June high above 76.00, Aussie data in focus

• AUD/JPY extends pullback from 76.03 to revisit the six week high flashed on Tuesday.
• Market sentiment remains positive amid hopes of further stimulus, vaccine news.
• The preliminary readings of Australian Retail Sales for June will be the key.
• Updates concerning US fiscal package, coronavirus and the cure could also entertain the traders.

AUD/JPY rises to 76.25, up 0.17% on a day, ahead of Tokyo open on Wednesday. The pair surged to 76.31, the highest since June 08 the previous day, before easing to 76.03 by the end of Tuesday’s North American session. However, the latest pullback joins the trade-positive news to suggest the risk barometer’s further upside.

Be it European leaders’ agreement over 750 billion Euros of fiscal package or hints concerning the US fiscal package to combat the coronavirus (COVID-19) resurgence, AUD/JPY buyers cheer it all. Recently, US President Donald Trump said that the Senators, be it Republicans or Democrats, both want the stimulus to be passed. Offering further details of the same, American Treasury Secretary Steve Mnuchin said the COVID-19 bill will be passed by the end of July. Further. US House Speaker Nancy Pelosi also said that we bridge the differences between parties on the stimulus bill.

Elsewhere, Japan approved another virus drug Dexamethasone after passing Remdesivir earlier in the month. Previously, Russia marked success in reaching the fourth trial for its invention of vaccine to combat the deadly virus. Global pharmacy companies are on their run to search the cure to the pandemic, which in turn adds to the market optimism that the worst will soon be over.

On the contary, the surge in the US virus case remains as a concern for the bulls to tackle. Latest update signals that American marked the largest signle-day increase in death toll on Tuesday.

Amid all these catalysts, S&P 500 Futures add 0.20% to take the bids near 3,256 by the press time. It’s worth mentioning that Wall Street benchmarks marked mixed closings on Tuesday whereas the US 10-year Treasury yields slipped 1.5 basis points to 0.605% by the end of the previous day’s US session.

Moving on, Australia’s Retail Sales for June might ease from the previous jump of 16.9% with a 7.1% rise in the seasonally adjusted preliminary readings. Before that, Westpac’s Leading Index for the Pacific major, prior 0.19%, may also entertain the pair traders with its June month outcome. On the other hand, the preliminary announcements of Japan’s Jibun Bank Manufacturing PMI for July, expected 39.6 versus 40.1 prior, will also play its role to keep the traders busy.

Given the broad risk-positive market sentiment, AUD/JPY may extend its latest north-run unless any surprise negative arrives from the global dislike of China, for which the headlines have been silent off-late.

Technical analysis

Bulls await a clear break of June month’s top near 76.80 to aim for 77.00 and February 2019 low near 77.45. On the downside, the early-month top surrounding 75.00 offers strong support at the moment.