AUD/JPY retreats below 84.80 on suspension of Chinese-Australian economic dialogue

AUD/JPY erases partial daily gains in the Asian session.
Aussie suffers quick losses after China announces indefinite suspension of economic dialogue with Australia.
Risk aversion underpins the demand for yen.

Rekha Chauhan Independent Analyst

The Aussie depreciates against its rivals and book some quick losses in the Asian session. The cross peaked at 84.82 before returning to session lows at 84.24, albeit recovering swiftly above 84.50.

At the time of writing, AUD/JPY is trading at 84.53, down 0.08% on the day.

A Chinese top economic planner decided to suspend all China-Australia strategic economic partnership dialogue. The move is a response to some Australian Commonwealth Government official’s actions, in relation to disrupting the normal exchanges and cooperation between China and Australia, as reported by the National Development & Reform Commission (NDRC) of China.

The statement has immediate implications on the cross as it dived lower and remained under pressure. The move could hamper the trade aspects of Australia, as China is the largest trading partner for Australia.

On the other hand, the Japanese yen pulled out some gains on its safe-haven appeal. In recent development, Japan is considering extending the pandemic state of emergency with some relaxation.

As for now, the risk catalyst continues to influence and move the cross in a narrow trading range, as investors avoid the riskier aussie for the time being.

AUDJPY additional levels

AUD/JPY

Overview
Today last price	84.56
Today Daily Change	-0.06
Today Daily Change %	-0.07
Today daily open	84.62

Trends
Daily SMA20	84.01
Daily SMA50	83.87
Daily SMA100	82.1
Daily SMA200	79.11

Levels
Previous Daily High	84.69
Previous Daily Low	84.24
Previous Weekly High	85.01
Previous Weekly Low	83.5
Previous Monthly High	85.01
Previous Monthly Low	83.04
Daily Fibonacci 38.2%	84.52
Daily Fibonacci 61.8%	84.42
Daily Pivot Point S1	84.34
Daily Pivot Point S2	84.07
Daily Pivot Point S3	83.89
Daily Pivot Point R1	84.79
Daily Pivot Point R2	84.97
Daily Pivot Point R3	85.24

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.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD keeps losses near 1.1400 after soft Eurozone inflation data

EUR/USD keeps the offered tone intact near 1.1400 in European trading on Wednesday, pressured by softer Euronze and German inflation readings and receding bets for aggressive tightening by the European Central Bank (ECB). Traders will take more cues from the US Manufacturing PMI due later in the day.

Gold stays in red below $4,000, awaits Warsh's speech

Gold remains under selling pressure below $4,000, in the red for the third straight day on Wednesday. The Iran uncertainty and Fed hike bets support the USD, weighing on the commodity. Traders now look to Fed Chair Warsh's speech and the US data for a fresh impetus.

ISM Manufacturing PMI expected to signal continued expansion in the US

Attention shifts to Wednesday’s release of the June ISM Manufacturing Purchasing Managers Index, one of the most closely followed indicators of activity in the US manufacturing sector and an important barometer of the broader economy. Markets expect the headline index to remain unchanged at 54.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The European Central Bank Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Federal Reserve, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.