FXStreet (Mumbai) – The cross in the AUD/JPY failed near three-month highs and dropped sharply thereon in recent dealings, after the Aussie was hammered on poor Aus capex data.
AUD/JPY tested 88.50
Currently, the AUD/JPY pair drops -0.39% to 88.67, recovering slightly from fresh session lows struck at 88.52 shortly after the data release. AUD/JPY was unable to hold above 89 handle and the dismal Australia’s private investment data boosted the bears further. The poor capex numbers overshadowed the recent strong jobs report and could call for further easing by the RBA next month.
Private capex spending slumped 9.2% in Q3, missing the forecast 2.8% decline big time. While the 2015-16 capex estimate, came in line with forecasts at $120 billion for the fourth estimate.
Moreover, renewed weakness in USD/JPY on the back of a minor correction after Wednesday’s rally, also accentuated the downside in the cross. Amid light trading, as the US markets are closed on Thanksgiving holidays, attention now shifts towards Friday’s inflation report from Japan.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 88.91 (1h 20-SMA) and above which it could extend gains to 89.08/17 (daily high/ Nov 25 high). To the downside immediate support might be located 88.43 (10-DMA) below that at 88.17 (1h 200-SMA).
(Market News Provided by FXstreet)