AUD/JPY stays well bid above 77.00 after RBA minutes, China data dump


  • AUD/JPY takes the bids as RBA minutes refrains from any major negatives while China data flashed welcome signs.
  • RBA minutes reiterate the policymakers’ cautious optimism with a no to increase cash rate target.
  • China’s Industrial Production, Retail Sales grew beyond positive market forecasts in August.
  • Market sentiment wobbles as Sino-American tussle confronts vaccine hopes.

AUD/JPY rises to 77.20, intraday high of 77.25, during the early Tuesday’s trading. The pair recently picked up bids after RBA minutes flashed mildly positive signals whereas China’s August month data dump pleased the bulls. Even so, the challenges to the risk-on mood probe the pair buyers.

China’s August month Industrial Production grew past-5.1% forecast to 5.6% whereas Retail Sales crossed 0.1% market consensus with +0.5% readings.

Read: China’s Aug data dump: Retail Sales, Industrial Production beat estimates, AUD/USD in highs

Earlier during the day, minutes of the Reserve Bank of Australia’s (RBA) September month meeting mentioned that the board agreed to maintain highly accommodative settings as long as required. Though, comments like, “downturn had not been as severe as earlier expected” and “a recovery was underway in most of Australia” favored the pair bulls.

Read: RBA Minutes: Board reaffirmed that it would not increase the cash rate target until progress is made towards full employment, inflation

On the contrary, challenges to the market sentiment, as portrayed by the fresh US-China trade wars weigh the quote. The US recently banned apparel and computer parts from Xinjiang saying they are made by forced laborers. The move could be retaliation to Beijing’s probe anti-subsidy investigation on certain glycol ethers imports from the US.

Talking about risk-positive catalysts, the State Department from American eased travel warnings to China and Hong Kong whereas Global Times flashes upbeat signals for the coronavirus (COVID-19) vaccine. This follows Pfizer’s signal of availing cure to the pandemic by the year’s end as well as AstraZeneca’s restart of vaccine trials that got challenged by Washington.

It should additionally be noted that the victory of Japan’s Chief Cabinet Secretary Suga in the PM’s election and the recently published upbeat Industrial Production favor the Japanese yen versus the most currencies. Also favoring the safe-haven could be fears of no-deal Brexit and uncertainty over the American stimulus.

While the Asian calendar will be silent for now, risk headlines may gain market attention during the rest of the day.

Technical analysis

Unless providing a clear downside break of 21-day SMA, currently near 77.00, sellers are less likely to enter any traders.

Additional important levels

Overview
Today last price 77.17
Today Daily Change 0.11
Today Daily Change % 0.14%
Today daily open 77.06
 
Trends
Daily SMA20 76.99
Daily SMA50 76.11
Daily SMA100 74.14
Daily SMA200 72.86
 
Levels
Previous Daily High 77.36
Previous Daily Low 76.96
Previous Weekly High 77.74
Previous Weekly Low 76.12
Previous Monthly High 78.46
Previous Monthly Low 75.1
Daily Fibonacci 38.2% 77.11
Daily Fibonacci 61.8% 77.2
Daily Pivot Point S1 76.89
Daily Pivot Point S2 76.72
Daily Pivot Point S3 76.49
Daily Pivot Point R1 77.29
Daily Pivot Point R2 77.52
Daily Pivot Point R3 77.69

 

 

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