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.
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.
