AUDJPY – Intraday View – FOMC Day

AUDJPY, H1

After closing the market risk since the end of last week the Japanese Yen returned to strength temporarily, compared to the world’s major currencies, but it remains weak against the US Dollar. This is a result of the Fed’s view of accelerating interest rates, and is likely to happen again this week, while the BoJ is likely to keep its interest rate policy negative.

However, the weakening of the Japanese Yen and the AUDJPY pair, one of the indicators of market sentiment, is now visible. It has risen from the June low at the 92.50 zone to trade at 93.50 now, partly due to better-than-expected May Chinese economic data. China’s industrial production unexpectedly grew 0.7% after -2.9% in April, and the unemployment rate dropped from 6.1% in April to 5.9% in May. Meanwhile, retail numbers fell less than expected at -6.7% year-on-year, compared with forecasts of -7.1% and -11.1% last month.

As of this morning, Australia’s June consumer confidence numbers continued to decline for the seventh straight month, at the lowest level since April 2020 at 86.4 (-4.5%), owing to concerns about inflation and the acceleration of interest rate hikes of the central bank.

In the technical view, the AUDJPY pair today sees a bullish divergence as the MACD is starting to enter positive territory. There was the first resistance at yesterday’s high at 93.85 and the next resistance at the MA200 line at 94.80. Key support remains at the June low at 92.50.

Click here to access our Economic Calendar

 

Chayut Vachirathanakit

Market Analyst

 

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.