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  • The Aussie is leaning to the downside as the trading week opens bearish.
  • Data is thin for both the AUD and the JPY, and broader market flows will remain the main driver.

The AUD/JPY is stuck near the 80.00 handle as the pair struggles to make gains this week, and the AUD/JPY’s bearish slide from last week’s peak near 84.50 sees the Aussie primed for a continued slide against the safe-haven Yen.

It’s a relatively sparse week on the economic calendar for the AUD, and early Tuesday will see the National Australia Bank’s Business Conditions and Confidence indicators are dropping at 00:30 GMT, with Conditions expected to take a step lower to 9 (previous 15) and Confidence forecast to clip up to 5 (previous 4).

Broader market sentiment is seen constrained this week, continuing investors’ recent run of risk aversion in the face of rising US Treasury yields, and overall markets can be expected to continue grinding back into safer assets.

AUD/JPY levels to watch

The Aussie peaked at 84.50 last week against the JPY, but a reversal in broader market flows saw the AUD close in the red for five consecutive trading days, and the pair remains in a long-term downtrend with successive lower highs marking out a steady decline. The current floor for the pair rests at the last swing low at 78.70, while the current zone in play near 80.00 sees plenty of support in the near-term.