- AUD/JPY pulls back from fresh highs since late-July amid doubts over the US-China trade agreement.
- Broadly dovish BOJ minutes, downbeat Jibun Bank Services PMI fail to disappoint JPY buyers.
With the concerns surrounding initial trade agreement between the US and China grabbing the skeptics’ eye, AUD/JPY ignores signals from BOJ minutes and Japan data while stepping back to 75.17 during early Wednesday.
While minutes of the Bank of Japan’s (BOJ) October meeting keep exerting pressure on easy money policy, Japan’s Jibun Bank Services Purchasing Managers Index (PMI) for October slid into contraction with 49.7 figure versus 50.3 forecasts and 52.8 prior.
Even so, the AUD/JPY declines from fresh highs since July 26 as doubts concerning the US-China trade deal were unearthed by headlines from Nikkei and Global Times. Markets seem to ignore the news from Fox News that says the United States (US) and China will sign “Phase One” deal in Iowa.
As a result, the US 10-year treasury yields trim nearly two basis points (bps) from its latest gains to 1.85% by the press time.
It should also be noted that recently mixed statements from the US Federal Reserve (Fed) policymakers add challenges to the market’s risk-tone following the rise in expectations of a stop in Fed’s rate cut.
Given the lack of major data/events up for publishing amid the Asian session, traders will follow trade headlines for immediate direction. Following that, Fedspeak will be in the focus during the US session.
Technical Analysis
An upward sloping trend line since October 25, at 74.58 now, seems to be the nearest support ahead of 21-day Exponential Moving Average (EMA) level of 74.28 and October 11 high close to 74.00. On the upside, the pair needs to clear July 18 low surrounding 75.45 to target the July month top of 76.28.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.