- Markets continue risk-on after Friday’s US NFP report, but trade issues remain unresolved.
- Aussie sees a more active week with Retail Sales for Monday and a Tuesday showing of the RBA.
The AUD/JPY is trading higher, testing over the 83.00 level as Friday’s jobs figures from the US continues to boost risk appetite on global markets, despite the ongoing geopolitical tensions surrounding trade disputes the US and major allies.
Market sentiment has continued bullish after swinging risk-on late last week, and the Aussie is trading up against the safe haven Yen ahead of Australian Retail Sales figures, due at 01:30 GMT.
Australian Retail Sales are expected to print at 0.3%, a grudgingly sluggish figure but still a tick higher than the previously flat reading at 0.0%.
Looking ahead the Aussie will also see the latest interest rate statement from the Reserve Bank of Australia (RBA), though market reaction will be limited with the central bank already widely expected to stand pat on interest rates well into 2019.
AUD/JPY levels to watch
The pair’s bounce following a rejection of the major 81.00 level puts the Aussie on a technical recovery against the Yen, but repeating rejections from the 83.50 – 84.50 region has seen the AUD/JPY capped since falling to 80.50 in March. The pair has struggled to maintain momentum in either direction, and the current challenge for bulls will be to break through the current resistance band starting at 83.50, while bears will be looking to get past support from the last swing low into 81.00.
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