4 Sep 2013
AUD/JPY broke 90.50, bullish bias intact
FXstreet.com (Athens) -The AUD/JPY is heading upwards on Wednesday’s Asian trading session, due to solid Australian GDP data and a less dovish stance on behalf of RBA.
The AUD/JPY trades to the upper level on less dovish RBA and encouraging GDP data
The ‘Aussie’ was yesterday one of the outperforming G-10 currencies, mainly due to the ‘on hold’ stance on behalf of RBA. Elaborating on, due to the soft Australian domestic data in recent weeks, traders were expecting a more dovish stance on behalf of RBA. However, the RBA let down the investors betting on that case-scenario, providing a statement that was very similar to last month.
In addition, earlier in the kick-off of Asian trading session, the Australian GDP number, released at +0.6%, in line with market expectations, and slightly above calls on the yearly adjustment reading, as of 2.6% versus 2.5%. Traders might find more than plausible, that the combination of solid GDP data with the less dovish stance of RBA, will push the pair upwards. While, this is a very logical scenario, investors, should always take into deep consideration that the ‘Japanese currency’ is very sensitive to any war jitters, e.g. it was well boosted in the 1990-1991 gulf crisis and in the 2003 invasion to Iraq.
On the other hand, the China’s PMI released earlier again at better than expected level, showing that the biggest trading partner of the Australian’s economy paves the way to get out of the sluggish mode. This development, will ultimately push the AUD/JPY further upwards. Investors interested in the ‘Aussie’ pairs, might find interesting to read the following article
Technical Outlook and Strategic bias
THE AUD/JPY hit a fresh 5 week highs at 90.63 level, boosted further by China PMI after solid GDP released earlier in Asian’s opening trading session. At the time of writing, the AUD/JPY is trading on the upper level, at 90.60 (+0.43%), nearly daily high of 90.69. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support can be found at 90.00, 89.68 and 89.23, while resistance at 91.08, 91.31 and 0.9154, respectively.
The AUD/JPY trades to the upper level on less dovish RBA and encouraging GDP data
The ‘Aussie’ was yesterday one of the outperforming G-10 currencies, mainly due to the ‘on hold’ stance on behalf of RBA. Elaborating on, due to the soft Australian domestic data in recent weeks, traders were expecting a more dovish stance on behalf of RBA. However, the RBA let down the investors betting on that case-scenario, providing a statement that was very similar to last month.
In addition, earlier in the kick-off of Asian trading session, the Australian GDP number, released at +0.6%, in line with market expectations, and slightly above calls on the yearly adjustment reading, as of 2.6% versus 2.5%. Traders might find more than plausible, that the combination of solid GDP data with the less dovish stance of RBA, will push the pair upwards. While, this is a very logical scenario, investors, should always take into deep consideration that the ‘Japanese currency’ is very sensitive to any war jitters, e.g. it was well boosted in the 1990-1991 gulf crisis and in the 2003 invasion to Iraq.
On the other hand, the China’s PMI released earlier again at better than expected level, showing that the biggest trading partner of the Australian’s economy paves the way to get out of the sluggish mode. This development, will ultimately push the AUD/JPY further upwards. Investors interested in the ‘Aussie’ pairs, might find interesting to read the following article
Technical Outlook and Strategic bias
THE AUD/JPY hit a fresh 5 week highs at 90.63 level, boosted further by China PMI after solid GDP released earlier in Asian’s opening trading session. At the time of writing, the AUD/JPY is trading on the upper level, at 90.60 (+0.43%), nearly daily high of 90.69. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support can be found at 90.00, 89.68 and 89.23, while resistance at 91.08, 91.31 and 0.9154, respectively.