- AUD/JPY falls to cheer trade-positive headlines amid uncertainty over Brexit, the Fed rate cut.
- Japanese trade numbers, All Industry Activity Index will decorate the economic calendar.
With the global risk sentiment struggling between trade and Brexit, AUD/JPY declines to 74.15 amid the initial Asian session on Monday.
The pair recently surged to the highest since mid-September as an upbeat Australian Jobs report and a couple of mixed clues from the Reserve Bank of Australia’s (RBA) joined upbeat sentiment surrounding the US-China trade deal. It should also be noted that Westpac expects quantitative easing from the RBA starting from 2020 as its latest report says, “(RBA) is likely to be prepared to adopt some form of asset purchase program, if needed, over the course of 2020.”
In its latest trade update, the South China Morning Post (SCMP) quotes China’s Vice Premier Liu He as he said that “concrete progress” towards trade war deal in Washington was made.
On the contrary, the United Kingdom’s (UK) special Parliament session on Saturday failed to counter Brexit uncertainty as the British policymakers voted for Letwin Amendment rather than debating and voting on the Withdrawal Agreement (WA) Bill. As a result, the UK Prime Minister had to request another Brexit extension to the EU while the debate surrounding the WA Bill is still pending to take place sometime during this week.
Traders will now keep a tab over Japan’s September month trade numbers that are expected to register a fall in Merchandise Trade Balance Total and recovery in Exports/Imports.
Technical Analysis
Buyers look for entry beyond September month high, at 74.50, in order to aim for 75.00 and then targeting early-June low nearing 75.50. However, a downside break below 100-day Exponential Moving Average (EMA) level of 74.00 will not refrain from highlighting month-start top surrounding 73.40 to sellers.
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 comes under pressure near 1.0630
Further gains in the Greenback encourage sellers to maintain their control over the risk complex, forcing EUR/USD to retreat further and revisit the 1.0630 region as the US session draws to a close.
GBP/USD stays firm amid BoE, Fed commentary and US data
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.