FXStreet (Bali) – AUD/JPY spiked over 65 pips, last trading at 83.25/30 from 82.70, following upbeat Australian inflation numbers for Q4 2015, making the case for further RBA cuts more difficult to defend.
Australian Q4 2015 CPI break down
Australia RBA trimmed mean CPI (QoQ) came at +0.6% vs +0.5% and +0.3% last, while RBA trimmed mean CPI (YoY) stood at +2.1% vs 2.1% exp and last. Meanwhile, Australia Consumer Price Index (YoY) came at +1.7% vs 1.6% exp and 1.5% last, with Australia Consumer Price Index (QoQ) coming in at 0.4% vs 0.3% exp and +0.5% last.
Nikkei 225 on fire, 83.50 eyed
The strong rise seen in the Nikkei 225, currently up by more than 2.5%, after a strong recovery in risk sentiment, is also capping any potential downside in Yen crosses. Should the rise in the AUD/JPY extend, 83.50 is the next critical resistance (double top Jan 22/25) ahead of 84.00 handle. On the downside, today’s key support is seen at 82.50 mid round number, which coincides with the daily pivot level.
(Market News Provided by FXstreet)