14 Oct 2013
AUD/JPY tumbling to start week on US misery and Chinese growth concerns
FXstreet.com (Barcelona) - Risk-off is the name of the game globally to start the week – as reflected in the weakness in the key currency risk gauge, AUD/JPY.
AUD/JPY telling the story of global risk appetite
The AUD/JPY is taking hits on multiple fronts early Monday and is struggling to find its footing before too much damage gets done. China was out with trade balance data this weekend that caused concerns foe global economic growth as well as specific concerns regarding Australia (as Chinese exports fell precipitously to Australia). Interestingly, the report showed exports actually increasing to Japan (Yen-bullish – thereby increasing the downside pressure in USD/JPY.
Additional downside pressure is coming from the general risk-off attitude stemming from the continued bufoonery in Washington, D.C. Politicians making the rounds on the weekend talk shows reported a reversal in any progress that was made last week. However, it is worth noting that those same politicians said they were optimistic about coming to some sort of agreement before the 10/17 debt-ceiling deadline.
Technical outlook for AUD/JPY
Technicians say AUD/JPY conquered “correction resistance” at 93.00 last week – creating a very strong possibility of more gains to come (even if a pullback like this one were to occur first). Support comes in at 92.10. The next upside target above last week’s high of 93.43 is the 9/19 high of 94.43.
AUD/JPY telling the story of global risk appetite
The AUD/JPY is taking hits on multiple fronts early Monday and is struggling to find its footing before too much damage gets done. China was out with trade balance data this weekend that caused concerns foe global economic growth as well as specific concerns regarding Australia (as Chinese exports fell precipitously to Australia). Interestingly, the report showed exports actually increasing to Japan (Yen-bullish – thereby increasing the downside pressure in USD/JPY.
Additional downside pressure is coming from the general risk-off attitude stemming from the continued bufoonery in Washington, D.C. Politicians making the rounds on the weekend talk shows reported a reversal in any progress that was made last week. However, it is worth noting that those same politicians said they were optimistic about coming to some sort of agreement before the 10/17 debt-ceiling deadline.
Technical outlook for AUD/JPY
Technicians say AUD/JPY conquered “correction resistance” at 93.00 last week – creating a very strong possibility of more gains to come (even if a pullback like this one were to occur first). Support comes in at 92.10. The next upside target above last week’s high of 93.43 is the 9/19 high of 94.43.