AUD/JPY trades flat ahead of China data

The AUD / JPY cross is trading in the sideways manner around 86.30 levels ahead of the data release in China, which could show retail sales ticked higher in November. 

Rejected at 86.61

The cross was rejected at 86.61 on Monday, although the subsequent corrective move failed to breach the psychological level of 86.60. 

China retail sales are seen coming-in at 10.1% y/y in November. Meanwhile, industrial production is seen unchanged at 6.1% y/y. The data could not influence the demand for the Aussie dollars. 

AUD/JPY Technical Levels

A break above 86.61 (Monday’s high) would open doors for a possible cut through the psychological figure of 87.00 and a move towards 87.61 (61.8% of 2007 high - 2008 low). On the other hand, a breakdown of support at 86.00 (zero figure) could yield a re-test of the downward sloping monthly 100-MA level of 85.50. A violation there would expose 85.00 handle.