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AUD/JPY peeps above 1H 200-MA on upbeat China PMI

  • AUD/JPY rises above 1-hour 200-MA.
  • China NBS manufacturing PMI betters estimates.
  • Technicals look bullish.

The bid tone around the Aussie dollar strengthened, pushing the AUD/JPY above the 1-hour 200-MA level of 84.80 and to the fresh session high of 84.98 levels after China Nov. manufacturing PMI printed at 51.8, beating the estimated drop to 51.4 from the previous figure of 51.6.

The NBS or government PMI takes into account the state-owned enterprises (SOEs) who have a relatively easy access to credit as compared to the small and medium-sized export-oriented units (SME). Nevertheless, an uptick in the official PMI is good news. The private sector reading that focuses more on the SMEs will be released tomorrow.

Aussie dollar, being a proxy for China, is cheering the uptick in the PMI figure. Earlier today, Australia reported a 1 percent q/q rise in the private sector capex plans in the third quarter and an upbeat 2017/18 estimate.

AUD/JPY Technical Outlook

The daily chart shows a bullish price RSI divergence. Also, the cross has moved above the 1-hour 200-MA. So the pair may have found a near-term bottom at 84.35 (Nov. 27 low).

On the higher side, a move above 85.06 (Nov. 27 high) would open up upside towards 85.32 (Nov. 21 high) and 85.50 (Nov. 15 low). On the other hand, a break below 84.81 (10-day MA) would shift risk in favor of a re-test of 84.50 (Nov. 20 low) and 84.35 (Nov. 27 low).


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