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AUD/JPY drops 1 big figure to fresh 3-month lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The cross in the AUD/JPY extends its losing streak for the fourth straight session this Wednesday, with markets remaining jittery as risk-off intensifies after Yuan devaluation.

    AUD/JPY faces double-whammy


    Currently, the AUD/JPY pair drops -1.06% to 84.38, hovering close to fresh three-month lows struck at 84.28 in last hours. The AUD/JPY cross came under renewed selling pressure after another Yuan devaluation sent markets into a tailspin and triggered a fresh selling-wave, and therefore, boosted the demand for safe-havens such as the JPY.

    Moreover, the prevalent risk-off market profile also diminished the bids for higher-yielding assets such as the Aussie; while weaker China’s Caixin services PMI following dismal manufacturing PMI reading further refuelled China slowdown fears. China is Australia’s top export destination.

    Meanwhile, markets will continue to monitor the sentiment on the global equities ahead of a slew of major economic news from the US, including the ADP report, trade balance and ISM non-manufacturing PMI. However, the FOMC minutes may emerge the main market mover for today.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 85.40 (daily high) and above which it could extend gains to 86.20/39 (5-DMA/ Jan 5 High). To the downside immediate support might be located 83.86 (Oct 1 Low) below that at 83.23/03 (Oct 2 Low/ daily S3).
    For more information, read our latest forex news.
     

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