We’ve got a little bit of choppiness with a little bit of risk-off lean in today’s session, but will it be short-lived in this “reopening” themed environment?
That could be the case, making this pullback in AUD/JPY one to watch ahead of Australian & Chinese data.
Before moving on, ICYMI, today’s Daily London Session Watchlist looked at an opportunity forming on EUR/CAD as the pair continues to range, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
|DAX: 12624.03 -1.53%
FTSE: 6338.47 -2.07%
S&P 500: 3214.07 -0.58%
DJIA: 27390.81 -0.66%
|US 10-yr 0.82% -0.064
Bund 10-YR -0.319% -0.002
UK 10-YR: 0.321% -0.013
JPN 10-YR: 0.017% -0.024
|Oil: 37.87 -0.84%
Gold: 1728.10 +1.34%
Bitcoin: 9732.21 -0.05%
Ethereum: 243.59 -0.44%
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar for U.S. & Asia:
API Crude oil stock change at 8:30 pm GMT
Japan Machinery orders & PPI at 11:50 pm GMT
Australia Consumer confidence at 12:30 am GMT (June 10)
Australian Home loans at 1:30 am GMT (June 10)
Chinese Inflation rate at 1:30 am GMT (June 10)
What to Watch: AUD/JPY
Global traders are leaning towards risk-off at the moment, possibly taking a pause (or maybe even profits) after a massive risk-on move over the past couple of months from the COVID panic bottom.
This includes the rally in AUD/JPY, which recently shot higher since the end of May by over 600 pips!
Is this an opportunity for the bulls to jump back in? Or is this a short-term move lower?
Well, if you’re a bull on AUD/JPY, the argument that support could be in this area may come from the upcoming Australian and Chinese economic updates.
We’ve got Aussie consumer confidence and home loan data, as well as Chinese inflation data, to potentially spark some volatility in the Australian dollar. If those data points continue to point to a recovery in that region, we could see short-term term buyers on this pullback.
If the opposite scenario plays out with the data, and broad risk sentiment continues to lean negative, then there may be a continuation of today’s shift lower.
A break below the 74.50 and new resistance forming at that area in this scenario may draw in seller for short-term profits, likely targeting the recent swing lows around 71.00.