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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 keeps advancing after yesterday's surge resulted in a breach of a descending trendline resistance drawn off Mar 28 high. The move marked the completion of a bull pennant pattern as the rate ripped through the Y95.00 mark.
- The rate has added ~50 pips thus far and last trades at Y95.58, lurking above the 76.4% Fibo retracement of its 2007 - 2008 sell-off (Y95.43).
- The next layer of resistance is associated with a 2015 price congestion around the Y97.00 figure, with May 14, 2015 high of Y97.30 providing a key topside target.
- Bears need a retreat under Apr 11 low of Y92.28 to get some reprieve before setting their sights on Mar 31 low of Y90.76.
- Recent central bank messaging drew attention to the imminent widening of policy divergence between the BoJ & RBA. While Kuroda-san & Co. seem determined to stand by their ultra-loose stance, the RBA claim that the beginning of its rate-hike cycle will likely commence earlier than was expected before.
- On top of that, Japanese officials are showing little appetite to provide support to their embattled currency despite its relentless sell-off over the past few weeks. While they have been cranking up warnings on the matter, FinMin Suzuki stressed that the exchange rate is determined through market mechanisms.
Fig. 1: AUD/JPY
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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