AUDJPY at Critical Turning Point

Key Highlights

  • Aussie Dollar is testing an important support area against the Japanese Yen, which if broken might set the AUDJPY pair for more losses.
  • Australian House Price Index released by the Australian Bureau of Statistics posted an increase of 1.6 % in the first quarter of 2015, compared with the forecast of +2.3%.
  • In Japan, the Nomura/JMMA Manufacturing PMI was released, which declined to 49.9 in June 2015, and posted a contraction.

AUDJPY Technical Analysis

The Aussie Dollar recently traded close to the 96.40-50 resistance area where it found sellers and traded lower versus the Japanese Yen. The downside drift was strong enough to take out the 100 and 200 simple moving average (4-hours), which can be seen as a bearish sign.

There is a bullish trend line formed on the 4-hours chart, which managed to protect the losses. However, there is a major risk of a break below the trend line, as many negative signals pointing towards more declines in the pair moving ahead.


Australian House Price Index

Earlier during the Asian session, the House Price Index, which measures changes in housing prices of major cities in Australia was released by the Australian Bureau of Statistics. The market was expecting it to increase by 2.3% in first quarter of 2015, compared to the preceding quarter. However, the outcome missed the mark, as the House Price Index rose only by 1.6%. When we consider the yearly change, there was an increase of 6.9%, which is more compared with the last revised reading of 6.7%.

The report added that the “capital city residential property price indexes rose in Sydney (+3.1%), Melbourne (+0.6%), Brisbane (+0.4%), Adelaide (+0.7%), Canberra (+1.1%) and Hobart (+0.5%) and fell in Darwin (-0.2%) and Perth (-0.1%) “. Overall, the outcome was mixed, as there was no reaction in any of the Aussie Dollar pairs.

Japanese Nomura/JMMA Manufacturing PMI

There was a release in Japan as well, as the Nomura/JMMA Manufacturing PMI, which highlights an early snapshot of the health of manufacturing sector in Japan was published. The outcome was not as the market expected. There was a contraction in Nomura/JMMA Manufacturing PMI as it came in at 49.9 in June 2015, compared with the last reading of 50.9.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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