AUD/JPY surge to 80.65/70 resistance after China flash upbeat data
|- A fat increase in China’s industrial production growth joins upbeat GDP and retail sales to please the Australian Dollar (AUD) buyers.
- Japan’s Trade Balance and news reports from the US-China trade talks in focus now.
AUD/JPY is taking the bids around 80.60 during early Wednesday. The pair recently surged after China released headline economic data with industrial production registering a big increase.
While gross domestic product (GDP) for the first quarter (Q1) of 2019 matched consensus of 1.4% on QoQ basis and remained unchanged at 6.4% on a yearly basis, the YoY growth of March month industrial production beat 5.9% consensus with a big +8.5% mark. Retail Sales also crossed expectations concerning 8.4% rise with an 8.7% increase on YoY basis during March.
The quote earlier shed some gains as Japan’s March month total merchandise trade balance grew to 528.5 billion Japanese Yen (JPY) from 372.2 billion JPY forecast. Also adding to JPY strength could be upbeat comments from Japan’s economy minister Toshimitsu Motegi who is in Washington to discuss a trade deal with the US Trade Representative Robert Light Lighthizer.
Looking forward, developments surrounding China’s trade talk with the US and the outcome of the US-Japan trade negotiations could offer fresh impulse to the pair traders. Also, Japan’s industrial production for February month can become important to watch. The industrial production figure is likely to remain unchanged at -1.0% on YoY and +1.4% on a monthly basis.
AUD/JPY Technical Analysis
80.65/70 area including December 10 and 18 lows could act as immediate resistance for the pair, a break of which can recall 81.50 and December 13 high near 82.20.
On the downside, multiple highs marked since February to early April can limit the quote’s downside around 79.70/60. Should sellers dominate past-79.60, 50-day simple moving average (SMA) near 79.00 may flash on their radar.
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