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  • Aussie looks set to continue slumping after catching some lift over 84.00 handle.
  • AUD traders are sidelined ahead of RBA’s Lowe speech due today.

The AUD/JPY is drifting lower in Wednesday’s early session, testing just beneath the 84.00 major level.

The Aussie rebounded strongly to start off this week, but that bullish momentum is souring quickly, and the AUD/JPY is stuttering its way back down after making a two-month high at 84.48 yesterday.

In the early Tokyo session Japan’s Nikkei Manufacturing PMI printed at 52.5, below the expected 53.6 and a steeper contraction of the previous reading of 53.8. After that was Australia’s Westpac Leading Index for April which printed at 0.2%, a welcome bump higher after the last period’s -0.2%. The Aussie sees Construction Work Done at 01:30 GMT next, expected at 1.0% compared to the previous reading of -19.4%, an incredibly steep contraction.

The big headline for the Aussie today will be a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe, who is slated to speak at 08:00 GMT.

AUD/JPY levels to watch

As FXStreet’s Omkar Godbole noted about the pair’s technical stance, “multiple daily closes above 84.17 (100-day MA) would allow a rally to 85.63 (200-day MA), above which a major resistance is seen at 85.80 (61.8% Fib R of Jan-Mar drop). On the downside, support is seen at 83.50 (5-day MA), 82.92 (10-day MA), 82.60 (21-day MA).”