Bid tone around AUD gathered pace, pushing AUD/JPY into the positive territory after the data released in Australia showed firms plan to spend more than expected.
Dismal headline figures ignored
Australia retail sales growth stalled in July, the data showed as opposed to the expected growth of 0.3%. Meanwhile, capex plunged 5.4% in Q2, beating the estimated drop of 4.2. However, the forward looking capex estimate number showed the Australian firms plan to spend A$105.2b in 2016-17, which is well above the estimate of A$97b.
This helped Aussie shrug off the negative headline number. The AUD/JPY cross thus jumped to a session high of 77.83 levels and was last seen hovering around the same.
AUD/JPY Technical Levels
Acceptance below 50-DMA Level of 77.57 would expose 77.35 (5-DMA), under which the psychological level of 77.00 could be put to test. On the higher side, breach of resistance at 78.09 (61.8% of Brexit day high/low) could yield a test of 100-DMA level of 78.97. A violation there would expose 79.42 (76.4% of Brexit day high/low).
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