AUD/JPY hits 92.00 handle after PBOC Yuan fix

FXStreet (Bali) - AUD/JPY has seen an initial drop towards 91.20 only to bounce vigorously towards 91.86, now well en-route for a test of 92.00 after a close above 91.80 intraday horizontal resistance line.

Another Yuan devaluation by the PBOC

After the PBOC decided to devaluate its domestic currency by almost 2% (Tuesday) - largest 1-day adjustment on record -, and 1.6% (Wednesday) respectively, today's PBOC Yuan reference rate was set at 6.4010 vs prior close 6.3858, while prior fix (Wednesday) was at 6.3306.

AUD/JPY technicals

After touching the 92.00 round number just minutes ago, some profit taking by leveraged account is likely to be seen, although as long as the rate is able to stay above the mentioned 91.80 point of control, buyers should have the upper hand to try gain further ground. The moves currently seen are counter-intuitive to what was seen the first day of Yuan devaluation, when risk-off was dominant and the AUD being battered. Algo having plenty of fun, that's certain.

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