- AUD/JPY licks its wounds around one-week low, refreshes session top.
- Australia inks climate deals with Japan, Germany, eyes UK trade talks.
- Japan PM Suga ready for general election if opposition uses no-confidence vote.
- Japan’s Industrial Production for April, risk catalysts eyed.
AUD/JPY prints mild gains around 84.55, up 0.07% intraday, amid Monday’s quiet Asian session. In addition to the extended weekend in Australia and China, a light calendar and an absence of surprises from the latest Group of Seven (G7) meeting seems to back the quote’s latest consolidation.
Although the G7 verdict confirmed negative bias for China, Australia’s largest customer, the move was widely expected. Among the other moves, the global leaders agreed to donate more covid vaccines to the needy nations and discussed climate change, not to forget praising fiscal and monetary reliefs.
“The Group of Seven rich nations promised to tackle China's growing influence, fight climate change, get more COVID-19 jabs to poor countries and keep up their economic stimulus programs at their first summit since Joe Biden became U.S. president,” said Reuters.
Also contributing to the AUD/JPY uptick is the Australian drive to sign fresh trade deals with the UK, as well as firming up ties with Japan and Germany by signing to develop lower-emission technology.
It’s worth noting that Japan PM Yoshihide Suga’s warning to the opposition party over calling of the no-confidence vote, as well as cautious sentiment ahead of this week’s Fed meeting, weigh on the quote’s upside momentum.
Amid these plays, S&P 500 Futures print mild gains near the record top flashed on Friday.
Moving on, Japan’s April month Industrial Production, expected to remain unchanged at 15.4%, may entertain AUD/JPY traders amid an off in Australia and China. However, the risk catalysts keep the driver’s seat.
Technical analysis
Although the 21-day SMA breakdown favors AUD/JPY sellers, a clear break of 84.45-50 support zone, comprising 50-day SMA and an ascending trend line from late March, restricts the pair’s short-term downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.