AUD/JPY eyes 9-day high, N.Korea nuclear offer overshadows China CPI

• AUD/JPY is solidly bid, eyes 9-day high
• Yen offered as North Korea risks subside. 
• China factory-date inflation prints below estimates. 

The AUD/JPY looks set to print nine-day high above 83.33 as the Japanese Yen is being offered on fading North Korea risks. 

In a stunning development,  senior South Korean official visiting White House said North Korea's Kim is committed to denuclearization. Also, the officials hand-delivered Kim Jong Un's invitation, which has been accepted by Trump. The prospects of talks between North Korea and the US seems to have pushed the Yen lower against majors. 

Meanwhile, China's producer price index (PPI) dropped to 3.7 percent from previous month's print of 4.3 percent (expected 3.8 percent). However, North Korea's denuclearization offer is overshadowing a drop in the factory gate prices and is keeping the AUD/JPY cross solidly bid. 

Ahead in the day, the pair could extend the gains if the stock markets respond positively to North Korea news. Also, the Bank of Japan (BOJ) rate decision and Kuroda's comments could influence the pair. 

AUD/JPY Technical Levels

The pair clocked a high of 83.24 and was last seen trading at 83.19. A break above 83.33 (March 6 high) would open doors for 84.00 (psychological hurdle) and 84.38 (38.2% Fib R of Jan. 23 high and March 5 low). On the downside, a move below 82.50 (previous day's low) could yield a re-test of 82.01 (March 7 low) and 81.49 (March 5 low).