AUD/JPY - Above 200-day MA & at 3-week highs
- AUD in demand on strong Aussie & China data.
- AUD/JPY moves above the 200-day MA, tests 86.00 levels.
The AUD/JPY moved above the 200-day MA of 85.89 today, courtesy of a better-than-expected Aussie retail sales data and China services PMI release.
The Australian data released today showed consumption as represented by retail sales rose 0.5 percent in October, beating the estimated rise to 0.3 percent from the previous month's print of 0.0 percent. Also, Australia's current account deficit narrowed to a seasonally adjusted AUD 9.13 billion in the third quarter.
Elsewhere, China’s Caixin November Services PMI came in at 51.9 versus 51.2 last and 51.5 expectations.
As of writing, the cross is trading at 85.93 levels. It clocked a high of 86.00 levels. The cross could rally further if the RBA policy statement carries a hawkish tinge.
AUD/JPY Technical Levels
A move above 86.00 (psychological level) would open up upside towards 86.29 (monthly 100-MA) and 86.70 (monthly 5-MA). On the other hand, a break below 85.67 (4-hour 10-MA) could yield a sell-off to 85.31 (4-hour 100-MA) and 85.00 (psychological level).