AUD/JPY retreats to 94.00 on softer Australia Consumer Inflation Expectations, concerns over China

AUD/JPY reverses the previous day’s gains amid cautious optimism and downbeat Aussie data.
Australia Consumer Inflation Expectations eased to 5.9% from 6.3% in August.
US tariff chatters, covid fears in China test buyers despite US inflation-led market optimism.
Yields and risk catalysts are important for clear directions amid a light calendar.

Anil Panchal FXStreet

AUD/JPY holds lower grounds near the intraday low surrounding 94.00 after Australia’s Consumer Inflation Expectations eased during August. In addition to the Aussie data, challenges to the sentiment also exert downside pressure on the cross-currency pair.

The latest release of Australia Consumer Inflation Expectations dropped to 5.9% in August, versus 6.3% prior. The Aussie data tracks the US Consumer Price Index (CPI) that declined to 8.5% on YoY in July versus 8.7% expected and 9.1% prior, which joins the latest economic fears signalled by the Reserve Bank of Australia (RBA) to challenge the AUD/JPY bulls.

On the other hand, fears surrounding Australia’s largest customer China also weigh the AUD/JPY prices. Reuters relied on sources to mention that the saying US President Biden rethinks steps on China tariffs in the wake of Taiwan's response. Additionally, a jump in the coronavirus cases from China, to 700 new confirmed cases on the mainland on August 10 versus 444 a day earlier, also weighs on the pair.

Amid these plays, S&P 500 Futures print mild gains near 4,120 by the press time after Wall Street rallied and the US Treasury yields remained mostly unchanged the previous day.

A light calendar requires AUD/JPY traders to concentrate on the risk catalysts, mainly surrounding China, for fresh impulse.

Technical analysis

Despite the latest pullback, AUD/JPY sellers must break the 50-DMA support surrounding 93.85 to retake control. On the contrary, an upside break of the latest peak of 94.42 should lure bulls.

Additional important levels

Overview
Today last price	94.08
Today Daily Change	-0.12
Today Daily Change %	-0.13%
Today daily open	94.2

Trends
Daily SMA20	94.02
Daily SMA50	93.87
Daily SMA100	92.9
Daily SMA200	87.95

Levels
Previous Daily High	94.3
Previous Daily Low	93.48
Previous Weekly High	93.81
Previous Weekly Low	90.52
Previous Monthly High	95.76
Previous Monthly Low	91.42
Daily Fibonacci 38.2%	93.99
Daily Fibonacci 61.8%	93.79
Daily Pivot Point S1	93.69
Daily Pivot Point S2	93.18
Daily Pivot Point S3	92.87
Daily Pivot Point R1	94.51
Daily Pivot Point R2	94.82
Daily Pivot Point R3	95.33

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.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold sticks to modest losses amid Fed hike bets; holds above $4,100 ahead of US CPI

Gold meets fresh supply, eroding a part of the previous day's strong gains to the $4,150 resistance zone, albeit it holds above the $4,100 mark heading into the European session. Firming US Federal Reserve rate-hike expectations turn out to be a key factor driving flows away from the non-yielding bullion. Meanwhile, the US Dollar struggles to lure buyers amid mixed signals regarding the state of diplomatic talks between the US and Iran, offering some support to the commodity as traders seem hesitant ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.