- AUD/JPY rises on a beat in Aussie retail sales
- AUD/JPY climbed on the back of a 0.1% beat vs expectations in Aussie retail sales.
- AUD/JPY is currently trading at 77.884, up from a low of 77.81 having hit a high of 77.95.
Australian retail sales data for November of 2018 hit 0.4 % m/m for a beat vs the expected 0.3% and prior 0.3 - (y/y +3.6%). AUD/JPY has continued with its northerly trajectory following the release of Aussie retail sales and extends the flash crash recovery in a weak environment for the Japenese yen.
Overnight, the Aussie was in a chop but managed to fend of strength in the greenback that climbed from 95 the figure into the 95.50s despite the solid sentiment for a slower pace of rate hikes form the Federal Reserve.
However, weaker Asian growth is a factor that should keep the yen underpinned on a broader outlook, although the risk-on sentiment and consistent recoveries in global equity prices in European and US markets hinder the bull's case for a strong yen, much to the delight of the BoJ.
Overnight, the DAX rose 0.3% and the FTSE 100 managed a 0.5% rise. The S&P 500 and DJIA notched a marginal gain but managed to get out of correction territory. The US yield curve steepened slightly, with 2-year broadly unchanged and 10-year up 1bp.
At this juncture, the cross is looking comfortable and robust above the hourly pivot and is penetrating the 100-4hr SMA located at 77.92. A break there opens a target of R1 located at 78.19. Further up, R3 is located at 79.11. To the downside, less favoured according to readings in the RSI and MACD, 76.72 is where S2 is located.
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.