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  • AUD/JPY trades near 78.50 during early Thursday.
  • Pair fall short of extending recent pullback as traders await monthly Australian data.
  • 78.35 becomes immediate support to watch with 78.95 being likely nearby resistance.

The Australian Dollar (AUD) is trading a bit weaker around 78.50 against the Japanese Yen (JPY) during initial Asian sessions on Thursday. The AUD/JPY pair fall short of extending its pullback from 50-day simple moving average (SMA) as pessimism surrounding Aussie joined doubts concerning Brexit and the US-China trade talks that help the JPY. Next up on the investors’ radar will be January month retail sales and trade balance figures from Australia.

AUD/JPY dropped to a near two-week low on Wednesday after soft Australian GDP and dovish comments from the Reserve Bank of Australia (RBA) Governor Philip Lowe highlighted rate cut fears. However, the quote couldn’t successfully conquer the 50-day SMA level of 78.35 and witnessed pullback afterward.

The AUD/JPY pair failed to hold earlier short-covering moves during early Thursday as the latest news on Brexit and the US-China trade talks aren’t positive to the market sentiment and support safe-havens like JPY. The EU-UK leaders failed to agree over any deal at Brussels after two days of talks as they are still stuck on Irish backstop. On the other hand, Trump’s repeated appreciations of the trade negotiation without clear details threaten investors of something fishy.

It should also be noted that the Aussie traders were also cautious ahead of key data as latest updates from the nation have spread disappointments.

Forecasts concerning scheduled release favor 0.3% growth of seasonally adjusted January month retail sales against -0.4% prior contraction. Also, market consensus signals a decline of trade surplus to 3,000 million against 3,681 million registered in December.

AUD/JPY Technical Analysis

50-day SMA level of 78.35 acts as strong near-term support, a break of which can recall 78.00, 77.50 and 77.00 consecutive rest-points on the chart.

On the flipside, 61.8% Fibonacci retracement of December-January slump around 78.95 may limit immediate advances ahead of highlighting 79.50, 100-day SMA level of 79.80 and 80.00 round-figure.