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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/JPY continues to correct lower, the pair last near 104.70, back to mid June levels (earlier lows were at 104.53). We sit around 4.4% off recent highs (109.37 set on July 12).
- The recent sell off has corrected the technical overbought condition, at least based off the RSI (14), see the chart below. The RSI is not yet in oversold conditions but is at its lowest level since December last year.
- Levels wise the 100-day EMA sits back at 103.15, while the 50-day (near 105.25), may act as a resistance on any rebound in the near term.
- Outside of broader risk trends, along with intervention risks, we have Australian jobs data coming up soon as a watch point for this cross. The data could shift domestic sentiment, although focus is largely likely to rest on the Q2 CPI outcome, due at the end of this month to guide RBA risks into the August meeting.
Fig 1: AUD/JPY Corrects From Overbought Conditions
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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