- AUD/JPY extends a decline, testing back below 97.00.
- Australian Trade Balance climbs after Imports steeply contract.
- Aussie home lending growth falls back, Chinese CPI contracts further.
The AUD/JPY extended declines into a second day on Friday, with the Aussie (AUD) shedding weight against the Japanese Yen (JPY) with broader markets bidding up the Yen with the AUD set to round out the week’s trading as the single worst performer of the major currency bloc.
The AUD/JPY is set to close in the red for the fourth of the last five consecutive trading days as Australian economic data continues to miss the mark. Australian Retail Sales beat expectations on a seasonally-adjusted basis early Wednesday, helping to keep the AUD bid into the midweek, but a steep decline in Australian Imports leading to a surprise buildup in the Aussie Trade Balance swamped out AUD bulls on Thursday, wit the downtrend continuing on Friday after Australian Investment Lending for Homes declined to 1.9% MoM in November compared to October’s 4.9% (revised down slightly from 5.0%).
China’s annualized Consumer Price Index (CPI) beat market expectations on Friday, but still contracted in December compared to the same month a year prior, declining 0.3% compared to November’s -0.5% YoY decline, slipping below the median market forecast of a -0.4% contraction.
Japan’s Current Account grew less than expected on Friday, printing at ¥1,925.6 billion in November versus October’s print of ¥2,582.8 billion. Markets were hoping for a final reading of ¥2,385.1 billion.
Next week will see Australian Westpac Consumer Confidence for January which last grew by 2.7%, as well as Japan’s Producer Price Index (PPI) figures for December. Australian Securities Inflation follows closely behind, and early Wednesday will see Gross Domestic Product (GDP), Industrial Production, and Retail Sales figures from China.
AUD/JPY Technical Outlook
The Aussie’s dip against the Japanese Yen on Friday sends the AUD/JPY falling back into the 200-hour Simple Moving Average (SMA) near 96.90, and the pair is at risk of further entrenching into a medium-term consolidation pattern that has plagued the AUD/JPY since November.
Daily candlesticks have been pinned to the 50-day SMA for close to six months as the AUD/JPY struggles to develop meaningful momentum, buoyed by a 200-day SMA rotating higher into 94.50.
The pair hasn’t claimed any meaningful territory above 98.00 despite breaking above the key handle several times since September of 2022 as bulls struggle to develop momentum.
AUD/JPY Hourly Chart
AUD/JPY Daily Chart
AUD/JPY Technical Levels
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 holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.