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China’s economic reports came in mostly upbeat today.
Can these push AUD/JPY above this current ceiling?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Over the weekend, Russian President Putin warned that a full-scale conflict between Russia and NATO is possible if Western forces join fighting
ECB official de Cos says that the central bank might start cutting interest rates in June “if macroeconomic forecasts are met in the coming months”
New Zealand BusinessNZ services index improved from 52.2 to 53.0 to reflect stronger pace of expansion
Japanese core machinery orders slowed from 2.7% month-over-month gain in December 2023 to a 1.7% slump in January
U.K. Rightmove HPI showed acceleration in house price gains from 0.9% month-over-month uptick in February to 1.5% growth in March
China’s industrial production picked up from 6.8% year-over-year growth to 7.0% in February vs. expected drop to 5.3%
China’s fixed asset investment rose from 3.0% ytd/y in January to 4.2% in February, outpacing consensus of 3.2% gain
Chinese retail sales slowed from 7.4% year-over-year to 5.5% in February, closely in line with 5.6% consensus
Price Action News
Overlay of JPY vs. Major Currencies Chart by TradingView
Jitters ahead of tomorrow’s BOJ decision plus a downbeat core machinery orders report weighed on the Japanese yen in today’s Asian trading session.
Although many are expecting an end to negative interest rates, some still predict a somewhat dovish announcement reiterating that the central bank is in no rush to keep tightening monetary policy.
Meanwhile, most major currencies are treading carefully ahead of this week’s busy schedule, which is filled to the brim with central bank decisions and CPI releases.
Upcoming Potential Catalysts on the Economic Calendar:
Eurozone final headline and core CPI at 10:00 am GMT
U.S. NAHB housing market index at 2:00 pm GMT
BOJ monetary policy decision coming up
RBA monetary policy statement at 3:30 am GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
AUD/JPY 15-min Forex Chart by TradingView
A couple of upside surprises in China’s data points, combined with a downbeat Japanese core machinery orders report, lifted AUD/JPY up to the resistance near the 98.00 major psychological mark.
Central banks of Australia and Japan will be announcing their policy decisions tomorrow, so additional volatility is expected for this pair. Can it bust through the ceiling near R1 (98.08) then aim for the next upside target at R2 (98.38) or fall back to the lows at S1 (97.38)?
Leave your thoughts in the comments section below!
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