AUD/JPY reverses a dip to 83.30, despite China downgrade, poor Aus data

Dhwani Mehta FXStreet

The bears loosened their grip over the last hour, allowing a tepid-recovery in AUD/JPY from a downward spike to daily lows of 83.31.

AUD/JPY regains 50-DMA at 83.43, what next?

AUD/JPY makes minor-recovery attempts as risk sentiment appears to recover in tandem with the Asian equities, as market look past latest report of China’s ratings downgrade by Moody’s.

Moreover, fresh selling seen in the US dollar across the board, lifted the AUD/USD pair from session troughs, offering some support to the cross. The Aussie dropped to a low of 0.7455 on China downgrade and worse-than expected Australia’s construction work done data.

Meanwhile, on the JPY-side of the equation, a fresh bid tone behind USD/JPY also aids the minor-recovery in the AUD/JPY pair. Looking ahead, markets now await the US housing data for fresh incentive amid a data-light economic calendar today.

Technical Levels

Higher side: 83.57 (20-DMA), 84.47/50 (Apr 5 high/ psychological levels), 84.92/85 (100-DMA/ round number)

Lower side: 83 (round figure), 82.77 (Fib S2), 82.53 (May 22 low)

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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