- Aussie whips as market sentiment swings ahead of Trump-Kim meeting conclusion.
- Bullish uptrend remains in place, but a souring meeting could see risk aversion strike.
The AUD/JPY is trading in a light back-and-forth, currently cycling near the day’s start near the 84.00 handle as traders keep a close eye out for headlines from the ongoing Trump-Kim summit taking place in Singapore.
Aussie Home Loans recovered better than expected, printing at -1.4% versus the expected -1.9%, and certainly an improvement on the previous reading of -2.2%, while the Investment Lending for Homes reading for April also jumped upwards, coming in at -0.9% versus the previous -9% decline. Meanwhile, the NAB Business Confidence Survey for May came in slightly disappointing, printing at 6, below the forecast 9 and the previous printing of 10.
Little else remains on the docket for Tuesday on the AUD side, and markets are expected to continue focusing on the Trump-Kim summit, with market sentiment hanging on-balance while markets await Tweets or headlines from the summit.
AUD/JPY Technical Analysis
The Aussie is trading largely sideways against the Yen following the early day’s run-up as traders locked in positions ahead of the Trump-Kim summit, and market participants are now waiting for the outcome of the Trump-Kim summit to choose a direction. Hourly indicators are wobbling on the overbought side, but the pair’s overall bull trend remains intact.
AUD/JPY Chart, 1-Hour
Spot rate: 83.90
Relative change: 0.26%
High: 84.00
Low: 83.64
Trend: Bullish
Support 1: 83.64 (current day’s low)
Support 2: 82.58 (one-week low)
Support 3: 81.01 (one-month low)
Resistance 1: 84.53 (one month high)
Resistance 2: 84.80 (61.8% Fibonacci expansion level)
Resistance 3: 86.17 (100% Fibonacci expansion level)
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