AUD/JPY chart - Trading View
AUD/JPY snaps 5 straight sessions of downside and was trading 0.23% higher on the day at 74.73 at around 04:20 GMT. The pair seems to have found some respite from the bears amid improving risk appetite.
US President Donald Trump's comments that he wants the biggest stimulus than House Speaker Nancy Pelosi’s proposal have kindled hopes of immediate stimulus. Also supporting risk-on were Trump’s comments suggesting the nearness to the virus vaccine.
On the data front, weaker-than-expected China GDP data dent the Aussie. However, upbeat China Retail Sales and Industrial Production numbers overshadow dismal GDP data. Focus now on Fed Chair Jerome Powell’s speech for further direction.
Official data released earlier today showed China Q1 GDP y/y came in at +4.9%, missing forecasts of +5.2% (previous +3.2%). China’s September Retail Sales YoY, arrived at +3.3% vs. +1.8% expected and +0.5% last, with Industrial Output YoY at +6.9% vs. +5.8% expected and +5.6% last.
Technical analysis shows major trend in the pair has gone neutral, while minor trend is bearish. Price action is below cloud and is consolidating break below 110-EMA. Bearish divergence and oscillators keep pressure for further weakness. Immediate support lies at 23.6% Fib at 74.07. Scope for test of 200-DMA (72.84) on break below.


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