AUD/JPY shows little reaction to Australia NAB business survey results

Despite witnessing upbeat numbers of Australia’s NAB survey, the AUD/JPY remains modestly unchanged near 71.23 on early Tuesday.

July month data for National Australia Bank’s (NAB) Business Confidence/Condition survey portrays an upbeat scenario of the economy as both the releases beat estimates. The Business Confidence reading grew past-3 forecast to 4 whereas the Business Conditions rose beyond 1 expected to 2.

Earlier during the day, the pair showed little reaction to the comments from Reserve Bank of Australia’s (RBA) Assistant Governor (Financial Markets) Christopher Kent. While speaking at the Finance and Treasury Association Breakfast in Sydney, RBA’s Kent praised the central bank’s easy money policy that keeps the Australia Dollar (AUD) low. The policymakers further commented that the central bank’s policies are titled towards inflation targets and not the unemployment rate.

While receding tension in Hong Kong and expectations of the US-China trade negotiations in September are portraying the quote’s strength, there is a little move away from the safe-havens like the Japanese Yen (JPY) considering overall market pessimism amid globally easy monetary policy.

Investors will now look forward to Japan’s June month Tertiary Industry Index (MoM), expected -0.1% versus -0.2%, for fresh clues while trade/political plays can keep traders entertained.

Technical Analysis

While a break of August 08 high around 72.40 can trigger the pair’s fresh upside targeting 73.00 and then rush towards June month low of 73.92, bears await declines below 70.70 in order to aim for 70.00 round-figure and March 2009 high surrounding 69.60.