AUD/JPY off-lows, but still below 5-DMA amid risk-off
- Asian stocks turn negative.
- Risk-off back in vogue.
- Moves further away from 85 handle.
The AUD/JPY pair witnessed aggressive selling earlier today, as a renewed risk-aversion wave gripped the markets amid tumbling Chinese stocks and mixed oil prices.
AUD/JPY: Vulnerable below 84.50 levels
The cross in AUD/JPY remains heavily offered, as the sell-off in the Asian equities continues to boost the demand for the safe-haven Yen at the expense of the higher-yielding currency AUD.
The Asian stock markets were driven lower by the losing streak seen in the Chinese equities, while below estimates Chinese industrial profits data also soured the risk environment, adding to the weight on the fear gauge, AUD/JPY.
In the day ahead, the cross will track the sentiment on the European stocks ahead of the US new home sales data and Fedspeaks due later in the NA session today.
AUD/JPY Technical View
Higher-side: 85.28/33 (Nov 21 & 22 top), 85.50 (psychological levels), 85.96 (200-DMA)
Lower-side: 84.47 (5-month lows), 84.00 (round number), 83.76 (March lows)