AUD/JPY shows little reaction to Australia NAB data amid broad risk-on

Mixed data from Australian business survey.
Risk tone remains light on trade positive news.
Political developments to gain major attention amid lack of economics.

Anil Panchal FXStreet

With the mixed numbers of NAB business confidence and business conditions, the AUD/JPY pair remains modestly unchanged to 75.58 during early Tuesday.

The May month survey of business conditions and business confidence by the National Australia Bank flashed mixed signals as the former declined to 1 from 3 against the later one’s rise to 7 from 0.

Optimism surrounding China’s trade talks with the US and the absence of Mexican tariffs favor global risk sentiment off-late.

The closely watched risk barometer, the US 10-year treasury yield, gains nearly 2 basis points to 2.154% by the press time.

Moving on, talks surrounding the US-China trade could keep directing near-term pair momentum amid no major data scheduled for release.

Recently, the US President Donald Trump threatened to levy fresh tariffs on China if G20 fails to offer any chances of trade talks between the US and China. On the other hand, China press mentioned that the President Trump fears the dragon nation’s progress.

Technical Analysis

January 04 low around 75.24, and latest bottom surrounding 75.00 can entertain sellers ahead of 61.8% Fibonacci retracement level of January – April upside, at 74.52. Meanwhile, a confluence of the 21-day simple moving average (SMA) and 50% Fibonacci retracement level around 75.70 becomes tough upside resistance to clear in order to aim for 76.20.

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.

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