AUD/JPY remains depressed near 84.80 ahead of key data
- AUD/JPY is under pressure in the Asian session.
- Aussie falters on disappointed PMI data.
- Yen remains sidelined as risk-sentiment improved.
AUD/JPY edges lower in the Asian trading hours on Thursday. The cross-currency pair erased some of its previous day’s gain to trade lower.
At the time of writing, AUD/JPY trades at 84.86, down 0.07% for the day.
The move in the pair was primarily sponsored by the negative sentiment surrounding the aussie post dismal economic data. The IHS Markit Composite PMI decreased to 58.0 in May, below the market expectation of 58.1. The IHS Markit Services Index also came at the lower side with 58.0 in May against the market consensus at 58.8. The Australia Construction Activity declined to 58.3 in May as compared to 59.1 in April.
Meanwhile, the Gross Domestic Product (GDP) released on Wednesday, showed the Australian economy grew by 1.8% in Q1, beating the market expectations.
On the other hand, the Japanese yen gained on its safe haven appeal amid rising coronavirus cases and extension of lockdown in the home country. The policymaker's downward economic assessment raises doubts about the pace of economic recovery.
It is worth noting that S&P 500 Futures are trading at 4,208, up 0.14% for the day.
As for now, investors await the Japan PMI data, Australian Retail Sales Data, and Balance of Trade to gauge the market sentiment.
AUD/JPY Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
