AUD/JPY snaps five-day uptrend above 81.00 as covid woes renew in Australia


  • AUD/JPY bounces off intraday low but prints daily loss for the first time in six days.
  • NSW refreshes highest covid infections since March 2020, Victoria ends lockdown.
  • Bears also cheer US Senators’ jostling over President Joe Biden’s infrastructure spending proposal, cautious mood ahead of the key data/events.
  • BOJ’s Kuroda, RBA’s Debelle and risk catalysts will be crucial for fresh impulse.

AUD/JPY struggles to keep the bounce off intraday low of 81.32, down 0.13% on a day, snapping a five-day uptrend during Tuesday’s Asian session. The cross-currency pair portrays the market’s latest risk-off mood as the coronavirus headlines from Australia come negative.

Although Victoria stays on the path to end the local lockdown tonight, per Aussie timings, a jump in the New South Wales (NSW) infections to the highest in 15 months, recently to 175 per the ABC News, becomes a concern for the Aussie authorities. With this, Australia’s total count of daily covid cases jumped to a fresh high since September 2020.

It’s worth noting that the indecision over US President Joe Biden’s $1.2 trillion proposal of infrastructure spending and the market’s cautious mood ahead of this week’s Federal Open Market Committee (FOMC) meeting also weighs on the sentiment. That said, a reduction in the week-start numbers and record closings of the Wall Street benchmarks pleased market optimists the previous day.

It’s worth noting that China’s Industrial Profits for June also eased from 36.4% to 20.00% YoY and exerts additional downside pressure on the AUD/JPY prices. Furthermore, Tokyo’s holding of Olympics, amid a jump in infections at home, also keeps the pair sellers hopeful.

Amid these plays, S&P 500 Futures drop 0.15% intraday whereas the US 10-year Treasury yields stay mildly bid around 1.28% by the press time.

Looking forward, speeches from BOJ Governor Haruhiko Kuroda and RBA Assistant Governor Guy Debelle will be offering short-term directions to the AUD/JPY pair, mostly southwards. However, major attention will be given to the coronavirus updates and the US-China tussles, not to forget political jitters in Japan, for fresh direction.

Technical analysis

Failures to cross 38.2% Fibonacci retracement of one-month fall starting from late June, around 81.25, directs AUD/JPY sellers toward the 81.00 threshold.

Additional important levels

Overview
Today last price 81.4
Today Daily Change -0.10
Today Daily Change % -0.12%
Today daily open 81.5
 
Trends
Daily SMA20 82.15
Daily SMA50 83.47
Daily SMA100 83.81
Daily SMA200 81.3
 
Levels
Previous Daily High 81.52
Previous Daily Low 80.77
Previous Weekly High 81.68
Previous Weekly Low 79.84
Previous Monthly High 85.2
Previous Monthly Low 82.14
Daily Fibonacci 38.2% 81.23
Daily Fibonacci 61.8% 81.06
Daily Pivot Point S1 81.01
Daily Pivot Point S2 80.52
Daily Pivot Point S3 80.27
Daily Pivot Point R1 81.76
Daily Pivot Point R2 82.01
Daily Pivot Point R3 82.5

 

 

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