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JPY

Cycle Highs In Sight For USD/JPY

AUD

Outlook Remains Bearish

AUSSIE
AUSSIE: AUD/USD trades marginally lower, at $0.6842, following the release of
the three Australian flash PMI readings from CBA, which slipped deeper into
contraction across the board.
- The main highlight Thursday was a considerably stronger than expected
Australian jobs report, which prompted participants to pare RBA easing bets,
with some analysts revising RBA calls. Resultant rally in AUD/USD was somewhat
trimmed into Europe, as the surge in employment was driven purely by part-time
jobs, while some of the progress may reverse as the data captures the fallout
from recent bushfires. The rate pulled back and almost re-tested earlier highs
before dropping sharply into the WMR fix as coronavirus worry sapped the yuan.
- The trendline support drawn off the Oct 2 low comes under increasing pressure.
It intersects at $0.6833 today, providing the initial bearish target. A break
here would open up the Jan 22 low of $0.6827. Bears eye the 200-DMA at $0.6879,
which capped gains on Thursday.
- On the radar next week are Australian NAB Business Confidence (Tuesday), Q4
CPI (Wednesday), as well as PPI and private sector credit (Friday).