FXStreet (Mumbai) – The sentiment around the AUD/JPY cross is being dented heavily, with oil prices down over 3% and the Chinese equities in a sea of red, triggering another wave of risk-aversion.
AUD/JPY regains 83 barrier
Currently, the AUD/JPY pair drops -0.82% at 83.10, recovering slightly from four-month lows reached at 82.67 following negative start to China stocks. The AUD/JPY cross continues to face double whammy with the Aussie dumped on the back non-existent appetite for risk after another Chinese yuan midpoint devaluation and the resultant panic selling globally. China’s stock markets fell more than 7% and hence, trading was halted for rest of the day.
Moreover, plummeting oil prices on intensifying risk-off moods and omnipresent oversupply worries also adds to the downside in AUD/JPY. However, the yen benefited from the widespread risk-aversion, and thus, accelerated the losses in the pair.
Calendar-wise, markets shrugged-off mixed macro news from Australia as risk-off sentiment continues to dominate. The Aus trade gap contracted from a revised $3.25 billion in October to $2.91 billion a month later. While building consents plunged 12.7% m/m in November, the biggest drop since June 2012.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 83.50/59 (round number/ 1h 10-SMA) and above which it could extend gains to 84.13 (Daily High). To the downside immediate support might be located 82.67 (Daily Low) below that at 82.08 (Aug low).
(Market News Provided by FXstreet)