Trading AUDJPY? This 11 August AUDJPY technical analysis by HotForex market analysts will aid you in your trading today. What are the key drivers of AUDJPY?
11 August, AtoZForex - With the yen to continued rally as investors flocked to safe haven assets and currencies and Aussie, on the other hand, falling further down on RBA Governor Lowe speech, AUDJPY and in general major Aussie crosses continued moving on a weak Aussie path.
11 August AUDJPY technical analysis
Geopolitics might by the main mover for these crosses which is strictly also affected by recent strength on gold, however Governor’s speech overnight added further weakness on Australian Dollar.
According to Gov. Lowe statement:
"The Reserve Bank Board has held the cash rate steady at 1.5 per cent, since this setting of monetary policy is supporting employment growth and a return of inflation to around its average rate of the past couple of decades. The Board has been prepared to be patient. The fact that the unemployment rate has been broadly steady has allowed us this patience.
We have preferred a prudent approach, which is most likely to promote both macroeconomic and financial stability consistent with the medium-term inflation target.”
He stated that further profits of Australian Dollar will slowdown Unemployment rate and inflation growth.
Meanwhile AUDJPY broke the 86.00 support level, and performed a 0.9% loss by closing yesterday at 85.99 from 86.80 high. It is currently moving below 50 Days MA, at 85.70 after recovering earlier from 85.40s. The next support area on the Daily chart is 86.50-87.00.
North Korea US tensions
Meanwhile threats between US and N. Korean continue, with President Trump doubled down on his threats to North Korea and maintaining edgy market sentiment, with Wall Street and stock markets in Asia taking a fresh beating and the Vix volatility index hitting a nine-month high. Military action is by no means assured, though this tensions with Pyongyang seem more climactic than in the past. Markets look set to remain choppy, caught in a binary risk-on/risk-off reaction function depending on how developments evolve.
In currency Market, USDJPY dove to a new eight-week low, at 108.90, EURJPY fell to a one-month low at 128.18, and EURUSD has settled around in the mid 1.17s, gaining ground amid a generally weaker dollar after U.S. data disappointments yesterday.
The article about 11 August AUDJPY technical analysis was written by Andria Pichidi, the Market Analyst at HotForex.
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