AUD/JPY: All eyes on Australian GDP to challenge 4-week old support-line
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AUD/JPY: All eyes on Australian GDP to challenge 4-week old support-line

  • AUD/JPY is on bids near 79.30 during early Wednesday.
  • The pair continues to respect four-week-old ascending support-line, at 79.10, stretched since February 08.
  • Traders now await Q4 2018 Australian GDP figures.

AUD/JPY trades near 79.30 during early Asian sessions on Wednesday. The pair repeatedly bounced off an upward sloping trend-line, at 79.10, since initial days of the February month. Investors now await the fourth quarter (Q4) growth figures from the Australian Bureau of Statistics in order to determine the near-term strength of the pair.

Given the latest developments from the US-China trade front be positive, coupled with the absence of big negatives for the global risk sentiment, the AUD/JPY pair managed to register gradual recovery since early February. However, the absence of positive comments from the Reserve Bank of Australia (RBA) and its Governor Philip Lowe continue to limit the pair’s rise.

As a result, investors will closely observe Q4 2018 gross domestic product (GDP) growth figures, up at 00:30 GMT on Wednesday, to get the fresh impulse for trading the Aussie.

Forecasts suggest the quarterly GDP growth figure to reprint the 0.3% number registered in Q3 whereas YoY growth may slow during the final quarter of 2018 to 2.5% from 2.8% increase of the same time the previous year.

In addition to the GDP figure, developments affecting global risk appetite, including Brexit and trade negotiations between the US and China, can continue entertaining the AUD/JPY traders.

AUD/JPY Technical Analysis

While four-week-old ascending trend-line limits the pair’s declines at 79.10, buyers need to overcome 79.55 and 79.80 if they target 80.00 round-figure. Also, quote’s rise past-80.00 can avail 80.65 and 81.00 as following stops during the rally to 81.25.

If at all prices slide beneath 79.10 support-line, 78.90, 78.65 and 78.30 may offer consecutive rests to the pair ahead of dragging it to 78.00 and 77.40 supports.

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