- The Aussie is holding steady near lows after China data beats expectations, but only mildly.
- China y/y CPI: 2.3%, expected 2.2%; PPI 4.1%, expected 4.0%.
The AUD/JPY opened the new week near 78.80 after declining last week, firming up a bearish descent for the AUD as safe-havens remain a popular choice for market participants who continue to get shaken out by trade war angst.
The latest Australian jobs report will be dropping this Thursday, and pummeled bulls will be hoping for a positive reading on the Aussie employment figures in order to spur on some bullish movement.
China’s CPI/PPI double showing came in green across the board, with the y/y CPI for August clipping into 2.3% (forecast 2.2%, last 2.1%) and the y/y PPI printing at 4.1% (forecast 4.0%, last 4.6%). The bullish mood is muted for Monday’s Asia market session as traders await continued trade headlines, but Aussie bulls can breathe a sigh of relief as China data passes without incident.
AUD/JPY levels to watch
With the Aussie dipping to a fresh 20-month low of 78.68 last week, the pair remains firmly buried in bearish territory, and support is thin at the current region, but a bullish recovery will see quick resistance at last week’s opening prices near 79.70, with further resistance at last week’s high of 80.60 with the 200-period H4 EMA sitting at the 81.00 major technical level.
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