AUD/JPY jumps above 10-day SMA as Asian stocks rise
- AUD/JPY is mildly bid above key average amid gains in stock markets.
- Risk reset weighs over the safe-haven Japanese yen.
- Gold prices trade at record highs, put a bid under the Aussie dollar.
The Aussie dollar is pushing higher against the anti-risk Japanese yen with the Asian stocks flashing green and gold extending its record rally.
The AUD/JPY pair is currently trading above the 10-day simple moving average (SMA) of 75.44, representing a 0.20% gain on the day.
Stocks rise
Major Asian indices like Japan's Nikkei, South Korea's Kospi, and Hong Kong's Hang Seng are up 0.30% to 1.7%. Even stocks in China are better bid despite the escalating tensions with the US and keeping the anti-risk yen under pressure. The futures tied to the S&P 500, too, are adding over 0.30% at press time.
The prospect of endless stimulus looks to be fueling gains in the Asian stocks at a time when nations are the globe are announcing fresh travel curbs amid the resurgence of coronavirus cases, according to Reuters.
Markets expect the US Congress to approve a new $1 trillion coronavirus aid package before enhanced unemployment benefits expire on Friday. Also, there is a general consensus in the market that the US Federal Reserve would sound dovish this Friday, possibly yielding a deeper drop in the US 10-year real or inflation-adjusted bond yield and further rally in both stocks and gold.
The yellow metal is currently trading at record highs above $1,970 and is likely drawing bids for the Aussie dollar. Gold is one of Australia's top exports.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
