AUD/JPY: Recovery mode intact post- Caixin China PMI

The cross in the AUD/JPY attempts recovery above 77 handle, following the release of slightly upbeat Chinese manufacturing PMI report, published by Caixin.

AUD/JPY bounces-off a brief dip below 77.00

The AUD/JPY pair, currently, trades almost unchanged at 77.12, recovering from a dip to session lows struck at 76.94 in the last hour. The cross in the AUD/JPY struggles to regain bids, and trades modestly as markets digest the latest in line with expectations Caixin China manufacturing gauge. China Sept Caixin manufacturing PMI stood at 50.1, matching expectations vs 50.00 last.

However, the recovery appears to lack follow-through as persisting risk-off trades, as the European banking sector worries spread into the Asian session. Markets ignored downbeat Japanese CPI figures and Aus private sector data as risk trends continue to dominate across the fx board.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 77.65 (100-DMA) and above which it could extend gains to at 78.00 (psychological levels).To the downside immediate support might be located 76.59 (daily S1) below that at 76.15 (Sept 27 low).