AUD/JPY trades near 4.5-month lows ahead of China data

• AUD/JPY is flashing red below 75.00 in Asia.
• China’s retail sales and industrial production data is due for release at 02:00 GMT.
• A below-forecast data could add to the bearish tone around AUD/JPY.

AUD/JPY is feeling the pull of gravity ahead of China’s retail sales and industrial production release.

The currency pair is currently trading at 74.89, having hit a high of 74.97 earlier today. More importantly, the cross is sitting closer to 74.77 hit yesterday. That was the lowest level since early January.

China data due at 02:00 GMT is expected to show the consumer spending as represented by retail sales rose at an annualised rate of 8.1% in May. Meanwhile, industrial production is forecasted to rise 5.5% year-on-year in May.

An above-forecast China data, particularly industrial production, could bode well for the AUD and other commodity currencies and riskier assets.

However, if the data misses estimates, then the AUD/JPY could print a fresh 5.5-month low below 74.77.

Technical levels