- AUD/JPY registers four-day winning streak even after Australia’s key data marked mixed outcomes.
- Coronavirus death toll increases to 563 in China with 28,018 confirmed cases.
- Qualitative catalysts will gain the market’s attention amid a lack of major data.
AUD/JPY rises to 74.25 after second-tier data concerning the Australian economic crossed wires amid Thursday’s Asian session. The pair seems to have given major attention to the broad risk recovery while flashing gains.
Australia’s December month Retail Sales contracted well below 0.2% forecast to 0.5% whereas Trade Balance also softened to 5,223M against 5,950M expected. Details suggest the improvement in Imports to 2% from -3% prior versus a soft Exports figure of 1% against 2% earlier. Further, the National Australia Bank’s (NAB) Business Confidence for the fourth quarter (Q4) matched the upwardly revised prior reading of -1 compared to the market consensus of +3.
Read: Breaking: Aussie data dump sends AUD 10 pips up and down
Following upbeat comments from the Reserve Bank of Australia (RBA) Governor Philip Lowe, welcome data points from the global powerhouses and positive performance of major equities have spread optimism across the markets on Wednesday.
The latest update from China’s Health Ministry suggests the coronavirus epidemic has taken lives of 563 people and infected 28,018 people inside the nation. While researchers at the top-tier economies, like the UK, are claiming to be close to the cure of the epidemic, the World Health Organization (WHO) leader Dr.Tedroz turned down any such accomplishments.
Even so, the US 10-year treasury yields added 14 basis points during the last two days to currently rise to 1.65% whereas Wall Street benchmarks also flashed gains off-late.
Considering the lack of economic catalysts left for publishing, markets will keep eyes on the latest risk drivers, namely coronavirus and data from the major economies, for fresh impulse.
Technical Analysis
100-day and 200-day SMAs, near 73.30 and 73.40 respectively, question the pair’s latest recovery while also increasing the importance of 61.8% Fibonacci retracement of the pair’s October-December 2019 upside, at 73.58, as the near-term key support.
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