FXStreet (Mumbai) – The AUD/JPY pair fell to an intraday low of 85.18 levels as weaker commodity prices dragged AUD and equities lower, thereby triggering safe haven demand for the Yen.
AUD/JPY a risk barometer?
The pair is increasingly being tracked as an indicator of overall market sentiment. The slowdown in China and weakness in commodity prices weighs directly on the AUD, while the resulting risk aversion leads to strength in the traditional safe haven assets like JPY, CHF, Treasuries.
Accordingly, the cross has been on the declining trend of late and remained mute even though the US stocks witnessed a bounce back on Monday.
AUD/JPY Technical Levels
The pair currently trades around 85.36. The immediate resistance is located at 85.91 (hourly 200-MA) and 86.32 (hourly 100-MA). On the lower side, support is seen at 84.78 (Sep 11 low) and 84.14 (Aug 26 low).
(Market News Provided by FXstreet)