AUD/JPY - Dip demand noted ahead of Aussie retail sales release

Two consecutive daily candles with long tails on the AUD/JPY chart suggest dip demand. The cross was last seen trading higher around 83.75 levels. BOJ governor Kuroda’s comments failed to have any major impact on the pair.

Aussie retail sales are seen rebounding in March

Retail sales are seen rising 0.3% m/m in March following a 0.1% contraction in February. Retail sales had registered a 0.6% expansion in the fourth quarter of 2016.

The offered tone around the Aussie could gather pace should the retail sales disappoint expectations.

Later in the day, Prime Minister Malcom Turnbull’s 2017-18 budget may move the AUD pairs. The government may boost public spending and cut taxes, thereby creating room for the RBA to push rates higher. That would boost the demand for the Aussie.

AUD/JPY Technical Levels

A break above 83.82 (38.2% fib retracement of 76.78-88.18) would add credence to the previous two candles with long tails and could yield 84.54 (May 2 high) and 85.00 (zero levels). On the other hand, a breakdown of support at 83.12 (May 4 low) would expose 82.48 (50% fib retracement of 76.78-88.18) and 81.82 (Apr 12 low).