- AUD/JPY is flashing red, but is holding above Tuesday’s low of 72.52.
- Aussie Construction Work Done (Q4) printed below estimates.
- With equity markets trading risk-averse, the odds appear stackd in favor of a deeper drop in AUD/JPY.
The downside momentum in AUD/JPY looks to have stalled in Asia.
The pair is currently trading near 72.68, representing marginal losses on the day. While the pair is flashing red, it is still holding above the low of 72.52 registered on Tuesday.
Big miss on Aussie data
The data released at 00:30 GMT showed Australia’s Construction Work Done (Q4) contracted 3% compared to expectations for a 1% drop and down from the previous quarter’s 0.4% growth.
So far, however, the below-forecast construction data, which feeds into the gross domestic product, has failed to move the needle in the Aussie pairs.
The lackluster reaction could be due to the fact that the data is backward-looking. That said, the futures on the S&P 500 have shed moderate gains seen a few minutes ago.
So, the bid tone around the anti-risk Japanese currency may strengthen. Note that the US stocks suffered sharp losses for the second day on Tuesday. The Dow Jones Industrial Average fell by 879 points, having shed over 1,000 points on Monday.
Technical levels
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