FxWirePro: AUD/JPY extends marginal gains ahead of RBA rate decision, bias bearish

AUD/JPY chart - Trading View 

AUD/JPY edges slightly higher on the day, trades at 75.13, up 0.05% at 07:45 GMT.

Upside was triggered by Chinese data relief, major trend remains bearish.

Data released earlier today showed China's Caixin Manufacturing PMI printed at 50.2, beating expectations at 50.0.

Recovery attempts were rejected at 20-DMA which is stiff resistance (currently at 75.98).

The pair has resumed downside after a brief period of consolidation. RBA and trade relations between the US, China and Mexico is in focus. 

Market is fully priced for an RBA cut tomorrow, with a second cut factored in by September and a terminal rate around 0.80% by June 2020.

Escalating Sino-U.S. trade war tensions keep safe haven bid for the Yen, weighing on the pair.

The pair is on track to test 61.8% Fib at 74.45. Near-term upside likely above 20-DMA. 

Support levels - 74.45 (61.8% Fib), 74, 72.75 (78.6% Fib)

Resistance levels - 75.50 (5-DMA), 75.98 (20-DMA), 76

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.