AUD/JPY extends recovery gains beyond 73.40 despite mixed Aussie data
- AUD/JPY benefits from the upbeat Australia housing market data, pays a little heed to the NAB numbers.
- Coronavirus fears remain the cards but a lack of fresh reports, Japan off trigger risk reset.
AUD/JPY rises to the intra-day high of 73.45 after the release of the second-tier Aussie data on early Tuesday. In doing so, the pair extends the previous day’s recovery while rising towards the key SMA confluence.
Australia’s December month Home Loans crossed 0.7% forecast to 3.5% whereas Investment Lending for Homes grew past-2.5% upwardly revised prior to 2.8%. Further, January month for National Australia Bank’s Business Confidence and Business Conditions showed a downbeat picture as both of them lagged below 0 and 4 respective forecasts to -1 and 3.
With the Japanese markets off in observance of National Foundation Day, the pair showed a little reaction to the risk catalysts, mainly coronavirus headlines. The latest data suggests that the Chinese epidemic has already crossed 1,000 mark as far as the dead from the disease are concerned.
Risk-tone remains mostly sluggish with S&P 500 Futures losing 0.05% to 3,355 with a little movement in global bonds.
Moving on, traders will keep eyes on the updates from China as the latest signs of factory reopen and Beijing’s commitments to respect the phase-one deal terms seem to have challenged the risk-off.
Monday’s bullish spinning top on the daily chart favors the pair’s further recovery towards 100/200-day SMA confluence near 74.30/35. Though, a downside break of 73.00 will negative the bullish candlestick formation, which in turn could recall the yearly bottom surrounding 72.40.