- AUD/JPY slips as Australia’s retail sales miss estimates.
- The consumer spending dropped by 0.3% in January
- Risk-off may strengthen bearish pressures around the JPY cross.
AUD/JPY found offers and fell by 10 pips after the official data showed Australia’s consumer spending, as represented by retail sales, dropped in January.
Retail sales fell by 0.3% in January, missing the forecasted print of 0%, having dropped by 0.5% in December, the Australian Bureau of Statistics reported at 00:30.
The AUD/JPY cross declined from 70.35 to 70.21 immediately in reaction to below-forecast data and was last seen trading near 70.25.
The US equity indices plunged Thursday and bond yields hit record lows as investors reassessed how much impact coronavirus would have on the economy and if rate cuts by the Federal Reserve would help mitigate the negative effect.
The S&P 500 fell by 3.39% and could have a bearing on the risk sentiment in the Asian markets, in which case, the anti-risk yen will likely draw bids, pushing AUD/JPY lower. Currently, however, the futures on the S&P 500 are reporting a 0.42% gain.
Technical levels
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