- AUD/JPY reverses the previous day’s bounce off one-week low.
- Market sentiment remains sour despite Fed’s dovish tilt, progress US infrastructure spending amid Delta covid variant woes.
- NSW reports the highest covid daily infection since March 2020.
- Second-tier Aussie data, US GDP eyed for fresh impulse.
AUD/JPY takes offers around an intraday low of 80.85m, down 0.28% on a day, during Thursday’s Asian session. In doing so, the cross-currency pair fails to extend Wednesday’s recovery moves from a one-week low amid downbeat US Treasury yields.
The US 10-year Treasury yields drop three basis points (bps) to 1.23% by the press time as risk-off escalates amid downbeat virus updates. Also portraying the dull sentiment is the 0.10% intraday loss of S&P 500 Futures.
Australia’s New South Wales (NSW) conveyed 239 new cases, the highest figures in 16 months, fueling the national number to the August 2020 levels. On the contrary, Victoria marked seven new cases to extend the downward transition since late last week. Though, the positive news was mostly ignored due to the heavy figures from NSW. On the other hand, Japan's Kyodo News said, "Japan's daily total of COVID-19 cases topped 9,000 for the first time on Wednesday, with a surge in infections in Tokyo casting a pall over the Olympics and putting pressure on the government of Prime Minister Yoshihide Suga to take stronger countermeasures."
Also positive for the market sentiment, as well as for the AUD/JPY, could be the US policymakers’ asset to begin a debate on President Joe Biden’s $1.2 trillion infrastructure spending plan. The procedural votes helped Democrats to kick-start negotiations on one more stimulus package.
Elsewhere, the US Federal Open Market Committee’s (FOMC) inaction and comments like “continuing economic improvement,” also should have brightened the market’s mood.
It’s worth noting that the pair cheered firmer Treasury yields and Aussie inflation data the previous day and awaits Australia Import-Export Price Index for Q2 of late. Also in the publishing pipeline is the preliminary reading of the US Q2 GDP, expected 8.6% annualized versus 6.4% prior.
Failures to cross a two-week-old falling trend line resistance direction AUD/JPY prices towards the monthly low near 79.85. However, 80.60 and the 80.00 threshold may offer intermediate halts during the fall.
Additional important levels
|Today last price||80.92|
|Today Daily Change||-0.16|
|Today Daily Change %||-0.20%|
|Today daily open||81.08|
|Previous Daily High||81.14|
|Previous Daily Low||80.64|
|Previous Weekly High||81.68|
|Previous Weekly Low||79.84|
|Previous Monthly High||85.2|
|Previous Monthly Low||82.14|
|Daily Fibonacci 38.2%||80.95|
|Daily Fibonacci 61.8%||80.83|
|Daily Pivot Point S1||80.77|
|Daily Pivot Point S2||80.45|
|Daily Pivot Point S3||80.26|
|Daily Pivot Point R1||81.27|
|Daily Pivot Point R2||81.46|
|Daily Pivot Point R3||81.78|
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.