#AUDJPY @ 94.1900 is hovering around 95.00 after the release of mixed Aussie PMI data. (Pivot Orderbook analysis)

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• AUD/JPY is hovering around 95.00 after the release of mixed Aussie PMI data.
• The RBA will determine the size and timing of interest rate hikes on the basis of economic data.
• Japan officials have preferred to restrict themselves from making commentary on intervention in FX.

The pair currently trades last at 94.1900.

The previous day high was 95.75 while the previous day low was 92.98. The daily 38.2% Fib levels comes at 94.04, expected to provide support. Similarly, the daily 61.8% fib level is at 94.69, expected to provide resistance.

The AUD/JPY pair has dropped to near the immediate support of 95.00 after facing hurdles around 95.00 in early Tokyo. The asset has picked offers while attempting to test Friday’s high at 95.74, where a knee-jerk reaction was recorded.

The IHS Markit has reported mixed Aussie S&P PMI data, which has brought some pressure after an elevation in the risk barometer. The Manufacturing PMI has escalated to 52.8 vs. the projections of 52.5 but lower than the prior release of 53.0. While the Service PMI has dropped sharply to 49.0 against the consensus of 50.5 and the former release of 50.6.

Meanwhile, commentary from Christopher Kent, Assistant Governor (Economic) at the Reserve Bank of Australia (RBA) in Monday Tokyo has weighed responsibility on economic fundamentals. RBA policymaker believes that economic prospects size and timing of rate increase will bank upon incoming data. He further added that the costly US dollar will restrict demand for US goods and commodities.

This week, the Aussie Consumer Price Index (CPI) data will be of utmost importance. On an annual basis, the headline CPI figure will accelerate to 6.9% vs. the former release of 6.1%. While a decline to near 1.5% is expected from the prior settlement of the inflation rate at 1.8% on a quarterly basis. This may force the RBA to return to the 50 basis points (bps) rate hike structure.

On the Tokyo front, commentaries on the Bank of Japan (BOJ)’s intervention in the currency markets have kept the Japanese yen unnerved. Japan’s top currency diplomat Masato Kanda said on Monday that they “Will continue to take appropriate action against excessive, disorderly market moves.” He reiterated that the administration won’t comment on whether BOJ has intervened in the FX market or not. It is worth noting that a knee-jerk move was recorded in the AUD/JPY pair on Friday.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 95.09 at the time of writing. Pair opened at 94.26 and is trading with a change of 0.88 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 93.26, 50 SMA 94.6, 100 SMA @ 94.24 and 200 SMA @ 91.12.

The previous day high was 95.75 while the previous day low was 92.98. The daily 38.2% Fib levels comes at 94.04, expected to provide support. Similarly, the daily 61.8% fib level is at 94.69, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 92.91, 91.56, 90.15
• Pivot resistance is noted at 95.68, 97.1, 98.45

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