AUD/JPY remains quiet near 19-week low due to lack of fresh catalysts


  • Absence of fresh directives offers rest to the bears.
  • Overall sentiment remains in favor of sellers due to risk-off moves.

Even after declining to the lowest since early-January, AUD/JPY refrained from extending its downside further as it traders near 75.70 on initial Friday.

The broad Australian Dollar (AUD) weakness on the back of RBA’s rate cut expectations could be considered as an important reason for the quote’s latest decline.

Additionally, the market’s risk on sentiment due to the US-China trade tension and political disturbance between the US and Iran also played its role to please sellers.

However, the downside was capped as the Wall Street remained positive after upbeat data from the US and some positive earnings report.

Global barometer of risk, 10-year treasury yield from the US, recovered nearly 2 basis points (bps) to 2.4% by the Thursday-end whereas losing nearly one bps to 2.39% during the press time.

Considering the lack of fresh catalysts, be it on the economic calendar or at the political front, prices might witness a short covering move unless additional data/news favor further risk aversion.

Technical Analysis

Not only recent low near 75.40 but January 04 bottom at 75.20 and 75.00 round-figure could also challenge sellers targeting 74.50 comprising July 2016 low.

On the contrary, 76.00 and a month-long trend-line at 76.50 seem adjacent upside stops, a break of which could please buyers with 77.00 and 77.45/50 resistance-area comprising multiple lows marked during January and March.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains on the back foot amid ongoing trade concerns

EUR/USD is trading around 1.1150, the lowest in over two weeks. Markets are worried about US-Sino trade tensions as US companies stop working with China's Huawei. European elections are warming up.

EUR/USD News

GBP/USD consolidates its losses amid Brexit pessimism

GBP/USD is trading in the low 1.2700s, close to the lowest since January. UK PM May is set to present a new plan after cross-party talks failed and as calls for her to quit mount.

GBP/USD News

USD/JPY off multi-day tops, looks to test 110.00 ahead of Fedspeak

Japanese growth optimism in play as risk-on fades amid looming US-China trade risks. Eyes on risk sentiment, trade developments and Fed speak for fresh directives.

USD/JPY News

Gold aims to revisit 9-month old support-line near $1272

Gold is on its third negative trading day as it seesaws near $1276.50 ahead of the European open on Monday. Pessimism surrounding the US-China and the US-Iran relations could limit the bullion’s decline near trend-line support.

Gold News

Cryptos stage a Sunday surge, levels to watch – Confluence Detector

Cryptocurrencies have enjoyed a massive comeback early on Sunday, recovering most losses. The cleanup seen ahead of the weekend may be over, and it is time to look up to higher levels. Here are the levels to watch according to the Confluence Detector.

Read more

Majors

Cryptocurrencies

Signatures