FXStreet (Guatemala) – AUD/JPY is currently trading at 85.33 and remains better bid in the improved risk appetite that the markets are in post the Nonfarm Payrolls miss at the end of last week’s business.
For now, corporate may well be relieved given that the Fed is unlikely to respond to such data with a rate hike before the year is out. The Aussie has been robust of late and will be supported while investors seek out a return on capital that is otherwise idle in times of risk aversion. The Yen on the other hand will continue to track global equity performances.
This week is key with the minutes of the FOMC and a dovish tone should favour the cross to the upside for the near term. However, how long will it be until investors fear a further slowdown of the Global economy when America proves that it is not recovering as fast as predicted? We now await the RBA who are expected to hold. “with recent economic data firm, and the Australian dollar chopping around its recent trough, the RBA need not be in a hurry to cut rates now,” explained analysts at RBA.
AUD/JPY levels
Technically, the cross is supported by the 50 SMA on the hourly sticks, trading in a bullish trend above the 200 SMA on the same time frame with MACD turning less positive and perhaps headed for a phase of consolidation on the 85 handle with the 4hr RSI (14) at 60 and approaching oversold territory.
(Market News Provided by FXstreet)