- AUD/JPY justifies its risk-on mood to grind higher after reversing from one-year low.
- Yields rally as banking fears ease, central bankers remain shy of backing further rate hikes.
- Upbeat Japan data failed to impress sellers amid risk-on mood.
- Australia Retail Sales for February and speeches from BoJ Governor Kuroda and RBA Policymaker Ellis eyed.
AUD/JPY seesaws near 87.50, following a clear rebound from the one-year low, as bulls await the key catalysts from Australia and Japan during early Tuesday. That said, the cross-currency pair cheered firmer sentiment to post the first daily gains in four the previous day.
With the European and the US authorities’ announcements of the extension of emergency lending to banks, the market players took a sigh of relief from the banking sector crisis. On the same line were comments from the central bank officials pushing back the banking crisis concerns and the Silicon Valley Bank (SVB) deal. It’s worth noting that the month-end consolidation could also be held responsible for the AUD/JPY pair’s run-up, especially when it eyes the second monthly fall with above 4.0% loss.
While portraying the mood, Wall Street closed mixed, losing some of the intraday gains in the late hours, whereas yields rebound after a four-week downtrend.
It should be noted that the AUD/JPY pair’s run-up ignored upbeat prints of Japan’s Coincident Index and Leading Economic Index for January, as well as growing chatters of the Bank of Japan (BoJ) exit from the ultra-easy monetary policy.
Looking ahead, Australia’s Retail Sales for February, expected 0.4% versus 1.9% prior, could offer immediate direction to the AUD/JPY pair ahead of a speech from BoJ’s exiting Governor Haruhiko Kuroda. Following that, comments from Assistant Governor (Economic) at the Reserve Bank of Australia, Luci Ellis will be important to watch for clear directions.
Among the key catalysts, talks about the banking crisis and central bank comments will be important for near-term directions.
Technical analysis
AUD/JPY recovery remains elusive unless the quote stays below a three-week-old resistance line, around the 88.00 round figure by the press time.
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.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.