AUD/JPY jumps 33 pips to two-week highs on the Aussie GDP report

• The bid tone around the AUD strengthened following the release of a better-than-expected Australia GDP report.
• AUD/JPY hit two-week highs, profit taking could cap further upside.

The AUD/JPY pair jumped 33 pips to 84.21 - the highest level since May 22, after the Australian Bureau of Statistics (ABS) reported a better-than-expected Australia first quarter GDP reading.

The economy expanded 1 percent quarter-on-quarter in the first quarter, narrowly beating the estimate of 0.9 percent, but well above the previous quarter's growth rate of 0.4 percent.

The upbeat GDP data is good news for the AUD, however, bulls may take a breather as a better-than-expected Q1 business inventory report released earlier this week had triggered speculation the GDP will better estimates.   

Hence, markets had priced-in the data in advance, which is evident from AUD/JPY's sharp rise from 82.74 to 84.02 on Monday.

That said, FX desks may continue to offer Yen if the global equities put on a good show.

AUD/JPY Technical Levels

Resistance: 84.48 (May 22 high), 84.86 (Feb. 21 high), 85.00 (psychological hurdle).

Support: 83.59 (100-day MA), 83.37 (5-day MA), 82.87 (10-day MA).