AUD/JPY rejected again near 83 handle post-Aus data

The AUD/JPY cross failed to sustain the Chinese PMI-led upside and turned sharply lower, following the release of the Australian private sector credit data.

AUD/JPY back below 5-DMA at 82.79

The bears continue to guard the 83 barrier for the third consecutive day, prompting a sell-off in AUD/JPY on every attempt to surpass it. The latest leg down in the cross can be mainly attributed to a pick-up in buying interest seen around the greenback across the board, which knocked-off AUD/USD to daily troughs, while AUD/JPY fell almost 30 pips lower from daily tops of 82.95.

Moreover, mixed market sentiment persisting in Asia continues to underpin the safe-haven demand for the yen, keeping a check on the prices. Meanwhile, the Australian private sector data left markets unimpressed, despite meeting expectations for the month of February.

However, the downside appears cushioned in the wake of upbeat China’s Markit manufacturing PMI reports and higher copper prices. China manufacturing PMI for May arrived at 51.2 versus 51.0 expected and 51.2 last.

Focus now shifts towards the US macro updates and Fedspeak due later in the day ahead, while tomorrow’s Aus capex and retail sales data will provide fresh impetus on the cross.

Technical Levels

Higher side: 83.07/18 (10 & 50-DMA), 83.50 (psychological levels), 84.06 (200-DMA)

Lower side: 82.50 (round figure), 82.28 (May 19 low), 81.71 (multi-week low)