- Japan data comes in as-expected, Tokyo CPI trudging far below the BoJ’s targets.
- The data-light Aussie sees itself falling victim to broader market flows this week.
The AUD/JPY is seeing selling action in early Asian markets, trading down past 79.50 as traders continue to parlay favour with the safe-haven Japanese Yen.
Japan’s inflation data came in largely as expected, with the annualized headline Tokyo CPI coming in at 1% as expected, but broader markets remain tepid and the already-weakened AUD is seeing further selling action as investors remain cowed by the week’s rough action across the board.
This week has been completely devoid of Aussie data on the economic calendar, and the AUD has been completely exposed to broad-market risk flows; with Aussie traders nailed to the wall, traders are seen moving into and out of the JPY as market sentiment ebbs and flows.
AUD/JPY levels to watch
The Aussie-Yen pair is seen trading roughly lower from last week’s peak at 80.50, and halting declines see the AUD/JPY testing into 79.00 at this week’s lows, but quick recovery action sees the pair bouncing back, albeit while holding under a declining trendline, constraining tha piar from the last swing high at 79.80.