AUD/JPY is trading inside a tight range ahead of BOJ’s core CPI and Australia’s consumer sentiment reports.
Will we see a breakout in the next trading sessions? Which way will the pair trade?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
France raised its terror alert warning to its highest level following the shootings in Moscow
BOJ’s meeting minutes showed members agreeing over the rising likelihood of underlying inflation rising towards their targets as well as the lack of pressure to “conduct rapid monetary tightening” like in the U.S. and Europe
PBOC set the yuan’s fixing at 7.0996 per dollar (vs. 7.2222 forecast, 7.1004 previous) – the largest gap against the expected fixing since November – in a bid to prevent further CNY weakness
Japan’s Vice Finance Minister and top currency diplomat Masato Kanda described the yen’s recent weaknesses as “speculative” and warned that he’s closely watching currency moves “with a high sense of urgency”
Crude oil prices traded higher on increased attacks on energy facilities in Russia and Ukraine and decreased ceasefire hopes in the Middle East
Price Action News
Overlay of AUD vs. Major Currencies Chart by TradingView
The Australian dollar got a lift in the Asian session, possibly from the People’s Bank of China (PBOC) announcing a USD/CNY fixing that’s much stronger for the yuan than markets had estimated.
Japan’s top currency diplomat also talked against the yen’s latest “speculative” weaknesses and added to the risk-friendly vibe that central banks are willing to step in for their currencies.
AUD soon hit a resistance, however, and has given up some of its gains as the European session players traded cautiously ahead of this week’s U.S. data releases.
The commodity-related currency is still trading positively across the board, with its biggest gains seen against CHF, GBP, and USD while seeing limited gains against NZD, EUR, and CAD.
Upcoming Potential Catalysts on the Economic Calendar:
U.K.’s CBI realized sales at 11:00 am GMT
FOMC member Raphael Bostic to give a speech at 12:25 pm GMT
U.S. new home sales at 2:00 pm GMT
BOE MPC member Catherine Mann to give a speech at 2:15 pm GMT
Australia’s Westpac consumer sentiment at 11:30 pm GMT
Japan’s services producers price index at 11:50 pm GMT
BOJ’s core CPI at 5:00 am GMT (Mar. 26)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
AUD/JPY: 15-min
AUD/JPY 15-min Forex Chart by TradingView
A bit of risk-taking in the markets and jawboning by a Japanese official still kept AUD/JPY in a tight range after pulling back on Friday.
Will we see a breakout in the next trading sessions? Japan is about to print BOJ’s core CPI estimate while Australia will drop its latest Westpac consumer sentiment report.
Can the pair bust through the Pivot Point (98.95) and make its way to the 99.80 and 100.00 previous inflection points?
Or will the next market themes extend AUD/JPY’s downswing and drag it to the S1 (98.19) or S2 (97.75) previous support areas?
Leave your thoughts in the comments section below!