AUD/JPY slumps almost 1 big figure on poor Aus CPI
AUD/JPY resumes its bearish momentum this Wednesday, after having witnessed a temporary relief rally a day before, as the bulls were hit by worse-than expected Australian inflation figures.
AUD/JPY back below 20-DMA at 85.69
The AUD/JPY pair slumps -0.71% to 85.65, flirting with session lows reached at 85.62 some minutes ago. The cross came under heavy selling pressure after the Australian dollar was battered across the board, following the release of softer Aus CPI report, which heightened expectations of a RBA rate cut going forward. Australia's Q4 CPI: All figures miss expectations
Addionally, a stronger yen versus the greenback amid risk-off markets and better Japanese trade data, also exacerbated the pain the AUD/JPY. Looking ahead, the cross will get influenced by the RO-RO trends, as markets absorb the Australian macro news.
Technical Levels
Higher side: 86.04 (5-DMA), 87.17 (Dec 16 high)
Lower side: 85.31 (50-DMA), 84.50 (psychological levels)
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
