The U.S. is printing its monthly ADP report today!
Will it have any impact on AUD/JPY’s intraweek trends?
Before moving on, ICYMI, yesterday’s watchlist checked out a Fib retracement trade on GBP/USD’s downtrend. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
NZ new housing consents jump back up from -2.2% to 5% in July
BRC: inflation in UK shops climbs to highest rate on record
Japan’s July industrial output rises 1.0% on month vs. 0.5% decline expected
Japan’s retail sales up by 2.4% vs. 1.5% annual gain in JuneNZ ANZ business confidence improves from -56.7 to -47.8
China’s manufacturing PMI rises, but factory activity still in contraction
China’s services sector activity expands at slower pace in August
China’s Shenzhen enters new four-day lockdown over COVID-19 outbreak
Japanese consumer confidence improves from 30.2 to 32.5 in August
Oil prices climb 1% as U.S. fuel inventories fall
Russian stocks hit 3-month high as Gazprom surges on dividend plan; rouble dips
China coal shares soar as investors bet economics will trump emissions concerns
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s flash CPI reports at 9:00 am GMT
FOMC member Mester to give a speech in Ohio at 12:00 pm GMT
U.S. ADP report at 12:15 pm GMT
Canada’s monthly GDP at 12:30 pm GMT
U.S. Chicago PMI at 1:45 pm GMT
EIA crude oil inventories at 2:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/JPY
AUD/JPY 1-hour Forex Chart
Reports of weaker factory and services activity in China dragged AUD earlier today.
AUD/JPY, which had been trading above the 1-hour chart’s 100 SMA, dipped from the 95.50 psychological resistance and is looking ready to go back to its trend line support.
Can AUD/JPY maintain its uptrend?Today’s economic data releases might provide some clues.
Traders expect today’s U.S. ADP report to reflect a much faster pace of hiring in August. If true, the report will support the Fed maintaining its hawkish stance and likely weigh on “risk” assets like AUD.
Of course, we could also see muted reactions to today’s data releases as traders focus more on broader economic themes.
Talks of Europe’s energy crisis, the major central banks’ interest rate increases, and global growth concerns might drag AUD/JPY below its August trend line support.
Watch how AUD/JPY reacts to the trend line and 200 SMA support zone!
