OctaFX | OctaFX Forex Broker
Open trading account
Back

AUD/JPY challenges long-term ascending trend line, dips below 86.00

  • AUD/JPY dipped below 86.00 for the first time since late August.
  • The ascending trend line (drawn from the Jun. 2016 low and Mar. 2017 low) has been breached.
  • Weaker-than-expected Aussie wage growth numbers hurt the AUD.

A combination of the weaker-than-expected the Aussie wage price index and the decline in the treasury yields pushed the AUD/JPY to a session low of 85.84 today.

The AUD is being offered across the board as the wage price index for Q3 came-in at 0.5 percent quarter-on-quarter vs. 0.7 percent expected. The annualized figure came-in at 2.0 percent vs. 2.2 percent expected.

Meanwhile, a 2 basis point drop in the US 10-year treasury yield strengthened the bid tone around the Japanese Yen.

Further, the AU-Japan 10-year yield spread narrowed/dropped to 255 basis points from 261 basis points. As of writing, the cross is trading at 85.87 levels.

AUD/JPY Technical Levels

A break below 85.70 (end Aug. low) would open up downside towards 85.45 (August low) and 85.20 (end Jan. low). On the higher side, a move above 86.02 (200-day MA) would expose 86.31 (previous day's low) and 86.56 (Sept. 6 low).

 

PBOC sets the Yuan reference rate at 6.6263

The People's Bank of China (PBOC) set the Yuan reference rate at 6.6263 vs. previous day's fix of 6.6399. 
Read more Previous

USD/JPY drops to 4-day low as Treasury yields drop, yield curve flattens

The USD/JPY is fast losing altitude, tracking the decline in the US 10-year treasury yield and the flattening of the yield curve. As of writing, the
Read more Next
Start livechat