#AUDJPY @ 89.9570 picks up bids to stretch the previous day’s bounce off one-week low after key data, events. (Pivot Orderbook analysis)
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- AUD/JPY picks up bids to stretch the previous day’s bounce off one-week low after key data, events.
- RBA MPS/SoMP portrays hawkish bias among the Aussie central bank officials.
- China’s Caixin Services PMI for April eases to 56.4 versus 56.5 expected and 57.8 prior.
- Cautious optimism in the markets ahead of the key US, Canada employment numbers favor pair buyers.
The pair currently trades last at 89.9570.
The previous day high was 90.12 while the previous day low was 89.16. The daily 38.2% Fib levels comes at 89.76, expected to provide support. Similarly, the daily 61.8% fib level is at 89.53, expected to provide support.
AUD/JPY pierces the 90.00 psychological magnet as it stretched the previous day’s rebound from a one-week low after upbeat outcomes from Australia and China during early Friday. Adding strength to the risk-barometer pair’s recovery moves could be the mildly positive sentiment in the market ahead of the US and Canada jobs report. However, holidays in Japan restrict the cross-currency pair’s immediate moves.
In its quarterly Monetary Policy Statement (MPS), the Reserve Bank of Australia (RBA) showed readiness for further rate hikes and defend hawks after surprising markets with a 0.25% rate lift earlier in the week. Also positive for the AUD/JPY pair were the upbeat economic forecasts and statements citing inflation fears in the Pacific major, not to forget hopes for China’s upbeat economic growth. It’s worth noting that the RBA’s MPS is also known as the Statement on Monetary Policy (SoMP).
Also read: RBA Monetary Policy Statement: Further rate hikes may be needed
On the other hand, China’s Caixin Services PMI for April eases to 56.4 versus 56.5 expected and 57.8 prior. Earlier in the week, China’s Caixin Manufacturing PMI for April dropped to 49.5 versus 50.3 expected and 50.0 prior while the official NBS Manufacturing PMI offered a negative surprise before the Chinese markets went on a long holiday until Thursday.
On a different page, US banking sector woes join looming default fears to challenge the market sentiment. However, recent actions from the US policymakers and comments suggesting no immediate fears of the banking crisis seemed to have joined the Federal Reserve’s (Fed) dovish hike to allow the bears to take a breather ahead of the key US Nonfarm Payrolls (NFP) data.
While portraying the mood, S&P 500 Futures print mild gains even if Wall Street benchmarks closed in the red. Further, the US Treasury bond yields ended Thursday’s North American session on the downside but an absence of Japanese traders limit bond market moves in Asia.
Having witnessed the initial reaction of the RBA MPS and China data, the AUD/JPY pair traders should concentrate on the qualitative factors amid a lack of major data from Australia and holidays in Japan. With this, the latest risk catalysts surrounding the US banking fallouts, debt ceiling expiry and pre-NFP caution will be in the spotlight.
Above all, the contrasting bias of the RBA and the Bank of Japan (BoJ) officials keeps the AUD/JPY pair on the bull’s radar.
Thursday’s Dragonfly Doji candlestick joins the AUD/JPY pair’s rebound from the 50-DMA, around 89.45 by the press time, keeping the buyers hopeful.
Technical Levels: Supports and Resistances
AUDJPY currently trading at 89.98 at the time of writing. Pair opened at 89.87 and is trading with a change of 0.12% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 89.98 |
| 1 | Today Daily Change | 0.11 |
| 2 | Today Daily Change % | 0.12% |
| 3 | Today daily open | 89.87 |
The pair is trading above its 20 Daily moving average @ 89.65, above its 50 Daily moving average @ 89.5 , below its 100 Daily moving average @ 90.16 and below its 200 Daily moving average @ 92.11
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 89.65 |
| 1 | Daily SMA50 | 89.50 |
| 2 | Daily SMA100 | 90.16 |
| 3 | Daily SMA200 | 92.11 |
The previous day high was 90.12 while the previous day low was 89.16. The daily 38.2% Fib levels comes at 89.76, expected to provide support. Similarly, the daily 61.8% fib level is at 89.53, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 89.31, 88.76, 88.36
- Pivot resistance is noted at 90.27, 90.68, 91.23
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 90.12 |
| Previous Daily Low | 89.16 |
| Previous Weekly High | 90.22 |
| Previous Weekly Low | 87.87 |
| Previous Monthly High | 90.78 |
| Previous Monthly Low | 87.59 |
| Daily Fibonacci 38.2% | 89.76 |
| Daily Fibonacci 61.8% | 89.53 |
| Daily Pivot Point S1 | 89.31 |
| Daily Pivot Point S2 | 88.76 |
| Daily Pivot Point S3 | 88.36 |
| Daily Pivot Point R1 | 90.27 |
| Daily Pivot Point R2 | 90.68 |
| Daily Pivot Point R3 | 91.23 |
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