7 Jan 2016
AUD/JPY attempts a tepid-bounce amid risk-off
FXStreet (Mumbai) - The sentiment around the AUD/JPY cross is being dented heavily, with oil prices down over 3% and the Chinese equities in a sea of red, triggering another wave of risk-aversion.
AUD/JPY regains 83 barrier
Currently, the AUD/JPY pair drops -0.82% at 83.10, recovering slightly from four-month lows reached at 82.67 following negative start to China stocks. The AUD/JPY cross continues to face double whammy with the Aussie dumped on the back non-existent appetite for risk after another Chinese yuan midpoint devaluation and the resultant panic selling globally. China’s stock markets fell more than 7% and hence, trading was halted for rest of the day.
Moreover, plummeting oil prices on intensifying risk-off moods and omnipresent oversupply worries also adds to the downside in AUD/JPY. However, the yen benefited from the widespread risk-aversion, and thus, accelerated the losses in the pair.
Calendar-wise, markets shrugged-off mixed macro news from Australia as risk-off sentiment continues to dominate. The Aus trade gap contracted from a revised $3.25 billion in October to $2.91 billion a month later. While building consents plunged 12.7% m/m in November, the biggest drop since June 2012.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 83.50/59 (round number/ 1h 10-SMA) and above which it could extend gains to 84.13 (Daily High). To the downside immediate support might be located 82.67 (Daily Low) below that at 82.08 (Aug low).
AUD/JPY regains 83 barrier
Currently, the AUD/JPY pair drops -0.82% at 83.10, recovering slightly from four-month lows reached at 82.67 following negative start to China stocks. The AUD/JPY cross continues to face double whammy with the Aussie dumped on the back non-existent appetite for risk after another Chinese yuan midpoint devaluation and the resultant panic selling globally. China’s stock markets fell more than 7% and hence, trading was halted for rest of the day.
Moreover, plummeting oil prices on intensifying risk-off moods and omnipresent oversupply worries also adds to the downside in AUD/JPY. However, the yen benefited from the widespread risk-aversion, and thus, accelerated the losses in the pair.
Calendar-wise, markets shrugged-off mixed macro news from Australia as risk-off sentiment continues to dominate. The Aus trade gap contracted from a revised $3.25 billion in October to $2.91 billion a month later. While building consents plunged 12.7% m/m in November, the biggest drop since June 2012.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 83.50/59 (round number/ 1h 10-SMA) and above which it could extend gains to 84.13 (Daily High). To the downside immediate support might be located 82.67 (Daily Low) below that at 82.08 (Aug low).