- AUD/JPY fails to hold onto recovery gains.
- Neither the US policymakers nor RBA’s Debelle offered any strong forward guidance.
- Increase in the COVID-19 death toll in the US, infection to the UK diplomat weigh on the risk-tone.
With the RBA’s Debelle turning down odds of any further immediate rate action, in contrast to a minor disappointment from the US Coronavirus Task Force Briefing, AUD/JPY takes around to 68.50 during the Asian session on Wednesday.
Even after citing higher uncertainty in predicting future economic performance and a major risk emanating from coronavirus (COVID-19), RBA’s Deputy Governor signaled to keep yields low and turned down the odds of any immediate action.
Read: RBA deputy governor, Debelle: Coronavirus causing large increase in risk aversion, uncertainty
Ahead of that, the US diplomats failed to provide any key details of President Donald Trump’s earlier indication of payroll tax cuts, despite WH Adviser Kudlow’s brief attempt.
On the contrary, increasing death toll in Washington, to 24 now, as well as infection to the UK Health Minister Nadine Dorries weighs on the market’s risk-tone. As a result, S&P 500 Futures fail to extend Wall Street gains while declining 1.2% to 2,843 by the press time.
Investors will continue following coronavirus updates for fresh impulse while Westpac Consumer Confidence and second-tier housing data from Australia will also entertain the traders.
Technical Analysis
Unless bouncing back beyond a descending trend line from January 2019, at 69.20 now, AUD/JPY prices are less likely to regain their status above 70.00. As a result, sellers can keep targeting 67.00 during the fresh downside.
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