AUD/JPY Dips Below 200-day EMA Before Rebounding

AUD/JPY fell 1.5% in Tuesday trade, building on Monday's losses of 0.73%. Lows in Tuesday trade came in the NY session, when the pair dipped towards 93.00, as USD/JPY plunged after briefly breaking above 150.00.

• AUD/JPY stabilized after this move, although hasn't been able to move back above 94.00 in any convincing fashion. We track just below this figure level in recent dealings.
• Tuesday weakness saw the pair briefly dip below the 200-day EMA but it wasn't sustained. This support point is just above 93.30. Note the 100-day EMA is around 94.00. Late September highs in the pair came close to 97.00.
• From the yen side, it will all be about intervention watch, although the continued move higher in US yields may provide somewhat of a floor for USD/JPY.
• For AUD, be mindful of spillover from the RBNZ decision today. More broadly, the focus is on China related sentiment, with metal prices weaker in recent dealings (iron ore back to $115/ton), while the headline Bloomberg index has given up a good chunk of its late September rally. Weakness in HK property stocks has not helped sentiment with China markets still out.
• Australian data sees August trade figures tomorrow, then consumer and business confidence readings in the first part of next week.