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16 Dec 2014
AUD/JPY likely to test 96 handle
FXStreet (Mumbai) - The Australian dollar erased gains from the Asian morning and trades lower against the Japanese yen after weak China PMI numbers hurt the Aussie.
The AUD/JPY pair trades at 96.57 levels, down -0.18% on the day, after having clocked a high of 96.94 in the early Asian hours. The Australian dollar lost ground against the yen after Chinese manufacturing growth hit a seven month low, signalling a softer economic activity in China, Australia’s biggest trading partner. Also, Reserve Bank of Australia’s (RBA) minutes released did little to help the Aussie.
On the other hand, risk-off trades globally added to the strength in the Japanese yen, which also weighed on AUD/JPY.
AUD/JPY Technical Levels
The pair has an immediate resistance at 96.74 (5-day SMA) levels, above which gains could be extended to 97.07 (20-day SMA) levels. On the flip side, support is seen at 96.30 (Oct 31 Low), from here it to 96 levels.
The AUD/JPY pair trades at 96.57 levels, down -0.18% on the day, after having clocked a high of 96.94 in the early Asian hours. The Australian dollar lost ground against the yen after Chinese manufacturing growth hit a seven month low, signalling a softer economic activity in China, Australia’s biggest trading partner. Also, Reserve Bank of Australia’s (RBA) minutes released did little to help the Aussie.
On the other hand, risk-off trades globally added to the strength in the Japanese yen, which also weighed on AUD/JPY.
AUD/JPY Technical Levels
The pair has an immediate resistance at 96.74 (5-day SMA) levels, above which gains could be extended to 97.07 (20-day SMA) levels. On the flip side, support is seen at 96.30 (Oct 31 Low), from here it to 96 levels.