AUD/JPY rebounds from 50-DMA supp ahead of China PMI data

The overnight drop to 50-DMA was short lived as the sell-off in the Japanese Yen helped AUD/JPY regain the bid tone and move to 87.44 levels. 

The confluence of the 50-DMA and 5-DMA is noted at 87.06 levels. 

Focus on China PMI

The NBS Aug manufacturing PMI [official PMI] is seen printing at 51.3 vs. previous figure of 51.4. The official data surveys large state owned enterprises, which have relatively easy access to credit compared to the small and medium sized export oriented units. A weaker-than-expected number could weigh over AUD/JPY and vice versa. 

Post China data, the focus would shift to Aussie private sector credit, business confidence, new home sales and private capex release. 

AUD/JPY Technical Levels

The cross was last seen trading around 87.35 levels. A break above 87.44 [50% Fib R of July high - Aug low] would expose 87.65 [July 24 low] and 88.00 [zero levels]. On the downside, support is seen at 87.06 [5-DMA + 50-DMA] could yield a sell-off to 86.77 [10-DMA] and 86.49 [Aug 28 low].