- AUD/JPY stays mildly bid despite weaker than expected Wage Price Index from Australia.
- Market sentiment struggle for a clear direction amid light news feeds.
- Vaccine hopes confront US stimulus uncertainty and virus woes, traders stay cautious move ahead of the RBNZ, US CPI.
AUD/JPY remains mostly unaffected by Australia’s second quarter (Q2) Wage Price Index amid the early Wednesday. The pair takes rounds to 76.10, up 0.05% on a day, by the press time. In doing so, the quote extends the previous day’s run-up amid risk reset.
Australia’s Wage Price Index eases to 1.8% versus 1.9% forecast and 2.1% YoY prior to the Q2. Earlier during the day, Westpac Consumer Confidence for August slipped under -6.1% prior with -9.5% figures.
The pair is likely taking clues from the mild gains of S&P 500 Futures and Japan’s Nikkei 225 while ignoring 0.30% loss of the ASX 200 by staying beyond 76.00.
Talking about the risks, the latest coronavirus (COVID-19) numbers from Victoria came in as 410 new cases and 21 deaths. These figures mark the sustained weakness in the pandemic data that replicates the scenario in the US. It’s worth mentioning that American President Donald Trump rekindled vaccine hopes during the early-day while citing a deal with Moderna.
Elsewhere, the US policymakers aren’t yet talking the COVID-19 relief package and the Sino-American escalates despite no challenges for the phase one deal.
Looking forward, traders may keep eyes on these risk catalysts for immediate direction while RBNZ and the US Consumer Price Index for July will decorate the economic calendar for the day.
Technical analysis
An ascending trend line from June 12, currently near 75.40, restricts the pair’s immediate downside. However, the bulls will have to cross a three-week-old downward sloping resistance line, at 76.35 now, to portray the pair’s further upside.
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