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AUD/JPY struggles to justify upbeat Aussie Retail Sales, firmer yields around 95.00

  • AUD/JPY pauses the pullback from intraday high but lacks upside momentum.
  • Australia Retail Sales grew 1.3% MoM in July, versus 0.3% expected and 0.2% prior.
  • Yields remain firmer amid hawkish central banks, recession woes.
  • RBA versus BOJ divergence keeps buyers hopeful even while challenges to risk weigh on prices.

AUD/JPY keeps Fridays pullback from the multi-day high even with Australias Retail Sales improved in July, per the info published during Mondays Asian session. With this particular, the cross-currency pair also pauses the retreat from the daily peak while taking rounds to 95.00.

Having said that, Australias seasonally adjusted Retail Sales rose to at least one 1.3% MoM, crossing 0.3% market forecasts and 0.2% prior during July.

Its worth noting that the cross-currency pair, also called the chance barometer, remains only mildly bid regardless of the latest uptick because the market fears economic slowdown amid the major central banks aggression towards the rate hikes. In doing this, the quote ignores firmer US Treasury yields, up seven basis points (bps) to 3.106% at the most recent.

On a single line may be the weekend comments from the lender of Japan (BOJ) Governor Haruhiko Kuroda. Speaking at the Kansas City Feds annual conference inJackson Hole Symposium, Wyoming on the weekend, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the central bank will probably continue using its accommodative policy in Japan, reported Reuters.

The underlying reason could possibly be from the Japanese yens safe-haven appearance, in addition to previously dovish comments from the Reserve Bank of Australia (RBA), never to your investment latest US-China tussles. Additionally exerting downside strain on the AUD/JPY prices may be the Japanese governments readiness for more stimulus.

Having said that, AUD/JPY traders should await the clear signals from the monetary policy authorities of Australia and Japan, remember tracking the recently higher recession woes amid fears of rate lifts, to find out short-term moves of the cross-currency pair.

Technical analysis

Triple tops around 95.75-80 tease AUD/JPY bears however the downside bias depends on an obvious break of a three-week-old support line, at 94.45 by the press time.

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