AUDJPY – Aussie Dollar Remain Range Bound Vs Japanese Yen28 September, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
AUDJPY – Aussie Dollar Remain Range Bound Vs Japanese Yen
- The Aussie dollar after dropping towards 76.00 against the Japanese yen recovered.
- However, the AUDJPY pair remained in a range formed on the 4-hours chart.
- In Australia, there was a speech by the RBA Assist Gov Edey, which made no major impact on the AUD.
- In China, the MNI China Business Sentiment Indicator was released, which posted a stable outlook for Sep 2016.
AUDJPY Technical Analysis
The Aussie dollar after trading as high as 79.13 against the Japanese yen started a downtrend until it found support near 76.00. The AUDJPY pair is currently recovering, but remains range bound.
As it can be seen in the 4-hours chart of AUDJPY, there is a range pattern formed. On the upside, an important range resistance is near 77.40. Both the 100 and 200 simple moving averages are positioned near it.
Moreover, the 50% Fib retracement level of the last drop from the 79.13 high to 75.97 low is also around the same range resistance. So, it won’t be easy for the Aussie dollar buyers to break it. On the downside, the 76.00 handle is providing strong bids. Until there is a break in AUDJPY, we may continue to see range moves.
MNI China Business Sentiment Indicator
Today in China, the MNI China Business Sentiment Indicator, which is based on a monthly poll of Chinese business executives, tracks and predicts Chinese economic conditions was released.
The market was not expecting any major decline in Sep 2016 from the last reading of 54.3. However, there was not much change in the reading and it remained stable.
US Services Purchasing Managers Index (PMI)
In the US yesterday, the Services Purchasing Managers Index (PMI), which captures business conditions in the services sector was released by Markit Economics. The market was expecting an increase in September 2016 (preliminary) from the last reading of 51.
However, the US Services PMI posted a better increase from the last reading of 51 to 51.9. The report mentioned that the “rate of expansion in business activity at U.S. service providers picked up for the first time in three months during September, but remained relatively modest. Meanwhile, growth of new orders eased to a four-month low and companies reacted to modest inflows of new work by reducing their rate of hiring“. Overall, the report was positive and helped the greenback in the short term.