- Risk-off flows are punishing the AUD across the board as traders flock into safe havens.
- Next week sees Aussie data after this week’s empty docket, but growth figures could be heading for disappointment.
The AUD/JPY traded to the downside in late Asian markets, testing 78.75 as the Aussie-Yen pairing accelerated losses in early Friday’s action as risk appetite remains subdued amidst roiling market sentiment.
Ongoing US-China trade tensions are seeing the Aussie hobbled in broader markets, and with a notable lack of data on the economic calendar this week the AUD has found itself fully exposed to bearish headlines throughout the broader markets. Global equities have taken a turn for the worst this week, with indexes across the board wiping out 2018’s gains and sending the Pacific-Asia session further into the red for the year, and the risk-sensitive Aussie is finding itself near the bottom of the barrel as investors pile into the safe-haven JPY.
Next week will see the AUD return to the macro calendar, but with economic growth within the Australian economy hinging on Chinese growth prospects, rising odds of an all-out trade war between China and the US is seeing investor confidence take steps lower, and the AUD could find itself strung out once again when next week’s inflation reading drop on Wednesday.
AUD/JPY levels to watch
The Aussie-Yen finds itself rapidly approaching the bottom end of a rough bearish channel in early Friday moves after pinging off the topside of the channel yesterday at 79.80, and the pair is rapidly advancing on 2018’s lows at 78.70. The pair is currently trying to push up from the bottom into a bullish intraday recovery near the 79.00 technical level, but markets are likely to remain bearish for the remainder of Friday’s trading.
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