A lack of fresh catalysts pushed the major currencies into tight trading conditions today.
AUD/JPY saw some action, though, and is even presenting a good retracement opportunity.
Thinking of tradingthe comdoll? Check out the top headlines that dominated Asian trading first:
- US consumer confidence drops in November as virus spreads
- Macron says worst of virus second wave over, lockdown to ease
- Yellen would need Congress to approve use of clawed-back Fed loan funds, Treasury says
- RBNZ: New Zealand’s economy relatively resilient to pandemic shock
- Australia construction work falls 2.6% in Q3
- Japan MOF panel urges wise spending, budget balance as focus shifts to post-COVID
- Tokyo to call for shortened hours for bars, restaurants: report
- RBNZ to tighten mortgage lending as prospects for negative rates dim
- Nikkei jumps 1.6% as Dow hits all-time high on Biden transition
Upcoming Potential Catalysts on the Economic Calendar:
- BOJ’s core CPI at 5:00 am GMT
- Credit Suisse economic expectations at 9:00 am GMT
- U.S. preliminary (second) GDP reading at 1:30 pm GMT
- U.S. initial jobless claims at 1:30 pm GMT
- U.S. core durable goods orders at 1:30 pm GMT
What to Watch: AUD/JPY
In case you missed it, the Asian markets took their cues from their U.S. counterparts and priced in vaccine developments and receding U.S. election uncertainty.Most of the yen crosses had pared back their gains, though, and now AUD/JPY is about 25 pips off of its daily highs.
76.40 is a level to watch as it lines up with a 38.2% Fib retracement as well as a key inflection point in November.
If we see more profit-taking ahead of the shortened trading week in the U.S. and a data light economic calendar, then AUD/JPY could hit its Fib levels before finding more support. Targeting November’s highs is a good initial target if we do see some pullback.
If AUD/JPY ends up making new November highs, though, then you can pull a breakout play and place your stops just under the consolidation points above 76.50.