- AUD/JPY pauses the pullback from intraday high but lacks upside momentum.
- Australia Retail Sales grew 1.3% MoM in July, versus 0.3% expected and 0.2% prior.
- Yields remain firmer amid hawkish central banks, recession woes.
- RBA versus BOJ divergence keeps buyers hopeful even as challenges to risk weigh on prices.
AUD/JPY keeps Friday’s pullback from a multi-day high even after Australia’s Retail Sales improved in July, per the data published during Monday’s Asian session. With this, the cross-currency pair also pauses the retreat from the daily peak while taking rounds to 95.00.
That said, Australia’s seasonally adjusted Retail Sales rose to 1.3% MoM, crossing 0.3% market forecasts and 0.2% prior during July.
It’s worth noting that the cross-currency pair, also known as the risk barometer, remains only mildly bid despite the latest uptick as the market fears economic slowdown amid the major central banks’ aggression towards the rate hikes. In doing so, the quote ignores firmer US Treasury yields, up seven basis points (bps) to 3.106% at the latest.
On the same line could be the weekend comments from the Bank of Japan (BOJ) Governor Haruhiko Kuroda. “Speaking at the Kansas City Fed’s annual conference in Jackson Hole Symposium, Wyoming over the weekend, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the central bank will likely continue with its accommodative policy in Japan,” reported Reuters.
The underlying reason could be linked to the Japanese yen’s safe-haven appearance, as well as previously dovish comments from the Reserve Bank of Australia (RBA), not to forget the latest US-China tussles. Additionally exerting downside pressure on the AUD/JPY prices could be the Japanese government’s readiness for more stimulus.
That said, AUD/JPY traders should wait for the clear signals from the monetary policy authorities of Australia and Japan, not forget tracking the recently higher recession woes amid fears of rate lifts, to determine short-term moves of the cross-currency pair.
Triple tops around 95.75-80 tease AUD/JPY bears but the downside bias hinges on a clear break of a three-week-old support line, at 94.45 by the press time.
Additional important levels
|Today last price||94.89|
|Today Daily Change||0.05|
|Today Daily Change %||0.05%|
|Today daily open||94.84|
|Previous Daily High||95.77|
|Previous Daily Low||94.62|
|Previous Weekly High||95.77|
|Previous Weekly Low||94|
|Previous Monthly High||95.76|
|Previous Monthly Low||91.42|
|Daily Fibonacci 38.2%||95.06|
|Daily Fibonacci 61.8%||95.33|
|Daily Pivot Point S1||94.38|
|Daily Pivot Point S2||93.93|
|Daily Pivot Point S3||93.24|
|Daily Pivot Point R1||95.53|
|Daily Pivot Point R2||96.23|
|Daily Pivot Point R3||96.68|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.