The AUD/JPY extended declines into a second day on Friday, with the Aussie (AUD) shedding weight against the Japanese Yen (JPY) with broader markets bidding up the Yen with the AUD set to round out the week’s trading as the single worst performer of the major currency bloc.
The AUD/JPY is set to close in the red for the fourth of the last five consecutive trading days as Australian economic data continues to miss the mark. Australian Retail Sales beat expectations on a seasonally-adjusted basis early Wednesday, helping to keep the AUD bid into the midweek, but a steep decline in Australian Imports leading to a surprise buildup in the Aussie Trade Balance swamped out AUD bulls on Thursday, wit the downtrend continuing on Friday after Australian Investment Lending for Homes declined to 1.9% MoM in November compared to October’s 4.9% (revised down slightly from 5.0%).
China’s annualized Consumer Price Index (CPI) beat market expectations on Friday, but still contracted in December compared to the same month a year prior, declining 0.3% compared to November’s -0.5% YoY decline, slipping below the median market forecast of a -0.4% contraction.
Japan’s Current Account grew less than expected on Friday, printing at ¥1,925.6 billion in November versus October’s print of ¥2,582.8 billion. Markets were hoping for a final reading of ¥2,385.1 billion.
Next week will see Australian Westpac Consumer Confidence for January which last grew by 2.7%, as well as Japan’s Producer Price Index (PPI) figures for December. Australian Securities Inflation follows closely behind, and early Wednesday will see Gross Domestic Product (GDP), Industrial Production, and Retail Sales figures from China.
The Aussie’s dip against the Japanese Yen on Friday sends the AUD/JPY falling back into the 200-hour Simple Moving Average (SMA) near 96.90, and the pair is at risk of further entrenching into a medium-term consolidation pattern that has plagued the AUD/JPY since November.
Daily candlesticks have been pinned to the 50-day SMA for close to six months as the AUD/JPY struggles to develop meaningful momentum, buoyed by a 200-day SMA rotating higher into 94.50.
The pair hasn’t claimed any meaningful territory above 98.00 despite breaking above the key handle several times since September of 2022 as bulls struggle to develop momentum.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.