AUDJPY – Can Aussie Dollar Overcome The 80.00 Resistance?01 November, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
AUDJPY – Can Aussie Dollar Overcome The 80.00 Resistance?
- The Aussie dollar is currently trading in range against the Japanese yen, and facing monster resistance near 80.00.
- The hourly chart of the AUDJPY pair clearly shows how important is the 80.00 resistance.
- A break and close above the stated resistance may call for more gains in the near term.
- Today, the AiG performance of the Mfg Index released by the Australian Industry Group posted an increase from the last reading of 49.8 to 50.9 in Oct 2016.
AUDJPY Technical Analysis
The Australian Dollar traded higher recently to challenge the all-important 80.0 resistance against the Japanese yen. The AUDJPY pair is gaining momentum, and may soon break the stated resistance for an upside move.
When we look at the hourly chart of AUDJPY, it highlights how important the 80.0 resistance is. It played a major role recently, and acted as a barrier for the buyers on many occasions.
There are a couple of positive signs to note. First, the pair is above the 100 hourly simple moving average, which may push the pair higher. Moreover, the momentum is currently with the Aussie dollar buyers, which means there is a high chance of the pair breaking the 80.0 resistance, and trading higher.
Australian AiG performance of the Mfg Index
Today in Australia, the AiG performance of the Mfg Index, which presents business conditions in the Australian manufacturing sector was released by the Australian Industry Group. The market was not expecting any major increase in the index in Oct 2016.
However, the outcome was positive, as there was a rise from the last reading of 49.8 to 50.9. The report highlighted that “Four of the five activity sub-indexes in the Australian PMI® expanded in October. Sales (55.0 points) and new orders (54.7 points) expanded solidly. Exports (56.0 points) returned to expansion from stable conditions while production (49.7 points) eased. Employment (47.7 points) remains contractionary and inventories (45.9 points) were run down in the month (likely the result of some lingering oversupply)”.
Overall, the outcome was positive, as there was an expansion. So, it may help the Aussie dollar against the Japanese yen for an upside move. A break above 80.00 in AUDJPY may take the pair towards 81.00.