AUD/JPY stays firmer around 83.50 on upbeat Australia Q4 GDP, risk adjustments
- AUD/JPY grinds higher around intraday top following firmer Aussie Q4 GDP.
- Buyers also benefit from bullish consolidation of US Treasury yields, stock futures.
- US President Joe Biden’s SOTU eyed amid chatters over banning Russian flights, Fed Chair Powell’s Testimony will be important too.
- Risk-aversion can keep sellers hopeful despite recent rebound.
AUD/JPY remains on the front foot around 83.45, up 0.20% intraday, following the strong Australia Q4 GDP release. In doing so, the quote also consolidates the previous day’s losses amid mildly positive sentiment in Wednesday’s Asian session, despite no change in geopolitical concerns surrounding Ukraine and Russia.
That said, Australia’s fourth quarter (Q4) GDP rose past 3.0% forecasts and -1.9% prior to 3.4% QoQ. Further, the YoY number rallied to 4.2% versus 3.7% expected and 3.9% previous readouts.
Read: Aussie GDP beat expectations, AUD/USD holds steady in bullish territory
The risk barometer pair dropped the most in a week the previous day as Russia intensified its military invasion of Ukraine despite the Western sanctions. The same pushed global entities, not just the West, to take punitive measures against Moscow. However, Moscow continues to signal that the fight will go on.
Though, the peace talks between Ukraine and Russia are on the table, which in turn keeps the markets hopeful of an intermediate solution to the grim conditions.
As a result, the S&P 500 Futures print mild gains and the US Treasury yields also pare the previous day’s heavy losses by the press time.
Looking forward, US President Joe Biden’s State of the Union (SOTU) and Fed Chair Jerome Powell’s bi-annual testimony will be crucial for market players to watch. Above all, risk catalysts are the key to fresh impulse.
Technical analysis
Although the monthly support line restricts short-term AUD/JPY downside around 82.85, buyers will have a tough task overcoming the 84.20 hurdle comprising multiple levels marked since November 2021.
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.
