AUD/JPY reaching for 84.00 handle ahead of Aussie GDP

  • Aussie climbing on renewed market sentiment as Japan data shows signs of improvement.
  • AUD traders expect great things for the Australian GDP figures today.

The AUD/JPY is catching some lift in early Wednesday trading, with risk appetite bolstered by trade news.

The Aussie is getting dragged up the charts by improving risk sentiment following headlines that Treasury Secretary Steven Mnuchin is pressing US President Donald Trump to introduce exemptions for Canada from the recent round of steel and aluminum tariffs; while the move is not directly related to the Aussie or Yen, markets are taking the move as reason to be upbeat, as key personnel within Trump’s administration begin to balk at the POTUS’ flagrant use of tariffs and destabilization of global trade as a negotiating tactic.

Further improving risk sentiment in the Asia session was y/y Labor Cash Earnings for Japan, which printed at 0.8% versus the 0.2% forecast, though the release is still a contraction from the previous reading of 2.0%. 

Quarterly GDP numbers for Australia are up next, due at 01:30 GMT, and traders will be looking for an improved reading of 0.9% in the headline figure following a recent upswing in economic data for the Australian economy. The 4th quarter GDP for 2017 last came in at only 0.4%.

AUD/JPY levels to watch

The pair slid into a session low of 83.33 on Tuesday before rebounding in the US session, and the current bull run will be looking to make a break over yesterday’s high near 84.20m which will see a continued push into 84.50, while a sudden reversal could see the pair slumping back to the week’s opening prices near 82.75 if market sentiment decides to take a turn for the bearish.

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