29 Oct 2013
AUD/JPY falls apart on weaker Aussie due to RBA’s Stevens
FXstreet.com (Athens) – The AUD/JPY has been trading consistently downwards since the early start of the Wellington opening trading session, due mostly to the fact that RBA’s Governor Stevens made his best efforts to talk down the Aussie in a conference held in Sydney, as well as on the Nikkei’s decline.
AUD/JPY falls like a stone for a fourth consecutive day; RBA’s quotes, Nikkei’s decline the major drivers
The AUD/JPY is tumbling for a fourth consecutive trading session and if we bear in mind that as of 23th October it was nearly at 95.22 levels at the opening and now lies at 92.75 area, the cross has already lost roughly 250 pips. The pair found itself under heavy pressure since the very early start of the Asian trading session, as there was a lot of chattering that RBA’s Stevens would talk down the Aussie in a prepared conference speech in Sydney. Briefly, Stevens did not let down the spreading rumors, supporting that the strength of the Aussie is not justified with underlying economic fundamental data of Australia and therefore it is just a time ‘issue’ to start a downtrend shift, “going materially lower is some time in the future.” Apart from Stevens, Nikkei declined by almost 0.86% strengthening further the Japanese currency, therefore dragging down the cross. Finally, in the risk-off mood ahead of the 2-day FOMC meeting, also probably assisted the fact that after China’s first cash injection in two weeks, there was an immense failure to reduce money market rates, so the Chinese liquidity fears are again on the ‘backdrop.’
Technical Aspects on the AUD/JPY
The cross is now trading at 92.73, down 0.77%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes timeframe. Daily pivot point support can be found at 93.15, 92.91, 92.68 and resistance at 93.76, 94.00 and 94.22, respectively.
http://www.fxstreet.com/technical-studies/currencies/audjpy/
AUD/JPY falls like a stone for a fourth consecutive day; RBA’s quotes, Nikkei’s decline the major drivers
The AUD/JPY is tumbling for a fourth consecutive trading session and if we bear in mind that as of 23th October it was nearly at 95.22 levels at the opening and now lies at 92.75 area, the cross has already lost roughly 250 pips. The pair found itself under heavy pressure since the very early start of the Asian trading session, as there was a lot of chattering that RBA’s Stevens would talk down the Aussie in a prepared conference speech in Sydney. Briefly, Stevens did not let down the spreading rumors, supporting that the strength of the Aussie is not justified with underlying economic fundamental data of Australia and therefore it is just a time ‘issue’ to start a downtrend shift, “going materially lower is some time in the future.” Apart from Stevens, Nikkei declined by almost 0.86% strengthening further the Japanese currency, therefore dragging down the cross. Finally, in the risk-off mood ahead of the 2-day FOMC meeting, also probably assisted the fact that after China’s first cash injection in two weeks, there was an immense failure to reduce money market rates, so the Chinese liquidity fears are again on the ‘backdrop.’
Technical Aspects on the AUD/JPY
The cross is now trading at 92.73, down 0.77%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes timeframe. Daily pivot point support can be found at 93.15, 92.91, 92.68 and resistance at 93.76, 94.00 and 94.22, respectively.
http://www.fxstreet.com/technical-studies/currencies/audjpy/