- Aussie remains bid on surprise positive data and hawkish tone in RBA statement.
- Earlier today data released showed the October retail sales registered at 0.5% m/m, beating expectations of 0.3% vs previous 0.1% revised from 0.0%.
- The Reserve Bank of Australia kept the cash rate (interest rate) unchanged as expected but sounded a little bit hawkish on inflation.
- The central bank has omitted the line - "inflation is likely to remain low for some time". Further, it says the Australian dollar remains within a range of the past two years.
- AUD/JPY reversed previous session's dip to spike past 200-DMA and hit 86 handle.
- Technical studies are bullish and we see scope for further upside.
- Close above 200-DMA could see further upside, scope then for test of 38.2% Fib at 86.93.
- On the other side, rejection at 200-DMA could see resumption of weakness.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-retraces-above-85-handle-scope-for-further-upside-200-DMA-at-8590-in-sight-1034016) has hit TP1/2.
Recommendation: Book partial profits. Hold for 86.15/ 89.90.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 108.265 (Bullish), while Hourly JPY Spot Index was at -112.254 (Bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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