- The Aussie is getting the short end of the stick in Thursday’s early action.
- Markets are coiling ahead of Friday’s US NFP reading.
The AUD/JPY is testing 81.15 as of writing, with the Aussie continuing to trade sharply lower against the safe-haven Yen despite a better-than-expected read for Australia’s Trade Balance.
Australia’s Trade Balance clocked in at 1.6 billion early Thursday, clearing the 1.4 billion forecast and making a mild stretch over the previous reading of 1.551 billion; bulls’ confidence remains to the downside however, and the AUD is continuing to slip backwards as broader market sentiment sees better odds of sticking with less risky assets like the JPY and USD.
Australia sees Retail Sales early Friday to cap off the trading week, and the Japanese markets have been relatively quiet this week, and with China’s institutions shuttered for the week-long holiday, normal volumes have dried up, leaving traders in volatility-prone markets.
AUD/JPY levels to watch
The Aussie has slipped last week’s low against the Yen as short sellers look to take the pair back down to September’s low near 78.60, and buyers are sitting further back in their chairs as they await a meaningful swing in broader market sentiment before trying to lay down some rubber and push the AUD/JPY back towards this week’s peaks near 82.35.
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