AUD/JPY snaps two-day losing streak while eyeing 76.00 amid risk-on mood
- AUD/JPY extends recovery moves from 75.68 despite mixed NAB data from Australia.
- NAB Business Conditions recovered, Business Confidence slumped in July.
- Market cheers return of Japanese traders, hopes of further stimulus.
AUD/JPY stays well bid as bulls attack 76.00, currently near 75.95, during the early Tuesday’s trading. The pair gains 0.25% as it defies the previous declines while preferring to cheer the risk-on mood versus mixed Aussie data.
National Australia’s Bank’s (NAB) Business Confidence slumped below +1 previous to -14 whereas Business Conditions grew beyond -7 prior to 0 in July. Additionally, payroll updates from the Australian Bureau of Statistics (ABS) also got a little attention from the AUD traders. The ABS recently said, “Nationally, payroll jobs remained 4.5% below mid-March.”
The data fails to weigh on the pair as the market’s risk-tone sentiment remains positive.
While returning from Monday’s Mountain Day off, Japanese traders cheer increased hopes of the US stimulus following President Donald Trump’s executive orders. In doing so, the market players ignore the escalations in the US-China tussle as well as the coronavirus (COVID-19) woes.
In retaliation to the American sanctions, Beijing also raised bars for 11 US diplomats. This pushes the American leader to say that phase one deal with China means “very little” to him now.
Elsewhere, Australia’s Victoria continues to struggle with the pandemic as death toll refreshes record high with 331 figures. On the other hand, Japan also bears the negative impacts of the deadly virus as Kyodo said, Japan's total coronavirus cases topped 50,000 Monday, increasing by 10,000 in just one week, as urban centers including Tokyo and Osaka continue to see high levels of infections since the central government fully lifted the nationwide state of emergency in late May.
Amid all these catalysts, Japan’s Nikkei 225 rises 1.5% whereas Australia’s ASX 200 adds 1.0% gains. Further, S&P 500 Futures also prints mild gains while the US 10-year Treasury yields rise one basis point to 0.58% by the press time.
Traders may now keep eyes on Japan’s Eco Watchers Survey data for immediate direction while paying more attention to the risk catalysts.
Technical analysis
Unless declining back below 75.30, comprising an ascending trend line from June 12, the pair can keep trying to refresh the monthly high near 76.45.
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.
