27 Jan 2015
AUD/JPY testing offers circa 94.00
FXStreet (Bali) - AUD/JPY found buyers off 92.30 on Monday - lowest since Oct 15 - as traders flocked to equities, keeping a risk-on tone in the pair, currently testing offers circa 94.00.
The next big mover for the Aussie comes on Wednesday at 11:30 AEDT, when Australia is due to publish its Q4 inflation figures, and as ANZ Economist note, "expected to show a continuation of recent disinflationary trends. Headline inflation is forecast at 0.3% q/q and 1.8% y/y."
ANZ adds: "Low inflation outcomes and should allow scope for the RBA to cut the cash rate in coming months to further support domestic economic activity. Wages growth is low and petrol prices will subtract a further 0.6ppt from headline inflation in Q1 2015 if they hold at current levels."
Technically, AUD/JPY hourly chart shows a more constructive picture, with buyers reclaiming the 20-EMA since early Europe, with further upside a possibility until faced with the next resistance at 94.50 (confluence mid round number and 100-EMA), ahead of 95.00/95.20 (round number/200-EMA). On the downside, given the extreme over-extension, risk should be limited, with setbacks below 93.00 to negate the near term bullish bias.
The next big mover for the Aussie comes on Wednesday at 11:30 AEDT, when Australia is due to publish its Q4 inflation figures, and as ANZ Economist note, "expected to show a continuation of recent disinflationary trends. Headline inflation is forecast at 0.3% q/q and 1.8% y/y."
ANZ adds: "Low inflation outcomes and should allow scope for the RBA to cut the cash rate in coming months to further support domestic economic activity. Wages growth is low and petrol prices will subtract a further 0.6ppt from headline inflation in Q1 2015 if they hold at current levels."
Technically, AUD/JPY hourly chart shows a more constructive picture, with buyers reclaiming the 20-EMA since early Europe, with further upside a possibility until faced with the next resistance at 94.50 (confluence mid round number and 100-EMA), ahead of 95.00/95.20 (round number/200-EMA). On the downside, given the extreme over-extension, risk should be limited, with setbacks below 93.00 to negate the near term bullish bias.