A look at the 28 February AUDJPY Technical Outlook shows that the Aussie has fallen against the Yen, giving up the overnight session’s gains and the pair is now trading near the 83.50 handle and still moving jumpy.
28 February, GKFX – A wide miss for Chinese PMI data has sent the Aussie tumbling in Asia markets; Manufacturing and Services PMIs both failed to match up with analyst expectations, and the market saw Manufacturing PMI come in at 50.3 versus the previous 51.3 and Services PMI drop to 54.4 following the previously reported figure of 55.3.
The sudden decline in Manufacturing PMI sees the indicator barely holding onto positive territory, which doesn’t bode well for Australia’s largest trading partner, and traders have responded to the weakness by dumping the Aussie.
The AUDJPY is dumping on China PMI miss
Australia doesn’t need the help from China right now, as economic data for the island country continues to meddle in the face of unsustainable levels of household debt and restrained wage growth. The Reserve Bank of Australia (RBA) is stuck in a holding pattern on interest rates, awaiting any signs of improving economic growth, and the RBA has had to leave the door open for the possibility of future easing if things don’t begin to improve.
The Yen also continues to show constrained growth, but the Bank of Japan (BOJ) finds themselves arguing from a much different position following months of continuous Yen strengthening; the Yen’s recent climb up the charts is threatening to undermine Japan’s meager growth, and the BOJ is running out of tools after weeks of repetitious attempts to talk markets down, and while the rhetoric seems to be having an effect in stopping the Yen’s climb, the Japanese currency remains at a precariously elevated position against the major blocs.
28 February AUDJPY Technical Outlook
The pair is still decidedly bearish, trading far below the 200-day SMA and technical indicators stretching themselves thin showing oversold conditions, while H4 candles still show consecutively lower highs pressuring price into the current floor. Support is thinning at 83.27, with resistance mounting from 84.15 and 84.80.
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