OctaFX | OctaFX Forex Broker
Open trading account

AUD/JPY drops, hints at risk aversion?

FXStreet (Mumbai) - The AUD/JPY pair fell to an intraday low of 85.18 levels as weaker commodity prices dragged AUD and equities lower, thereby triggering safe haven demand for the Yen.

AUD/JPY a risk barometer?

The pair is increasingly being tracked as an indicator of overall market sentiment. The slowdown in China and weakness in commodity prices weighs directly on the AUD, while the resulting risk aversion leads to strength in the traditional safe haven assets like JPY, CHF, Treasuries.

Accordingly, the cross has been on the declining trend of late and remained mute even though the US stocks witnessed a bounce back on Monday.

AUD/JPY Technical Levels

The pair currently trades around 85.36. The immediate resistance is located at 85.91 (hourly 200-MA) and 86.32 (hourly 100-MA). On the lower side, support is seen at 84.78 (Sep 11 low) and 84.14 (Aug 26 low).

EUR/JPY: upside appears limited – Commerzbank

In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the upside in the cross as limited...
Read more Previous

USD: Higher than pre-FOMC levels, strong comeback story – BAML

Ian Gordon, Research Analyst at BAML, note that the markets continue to digest the Fed’s “dovish hold” last week, and the knee-jerk USD weakness was understandable given the dovish elements of the statement, which exceeded even dovish expectations. But, the dollar has since reversed its losses and remains higher than pre-FOMC levels.
Read more Next
Start livechat