AUD/JPY TALKING POINTS – AUSTRALIAN DOLLAR, RBA, TRADE WAR NEWS
AUD/JPY trending greater from optimistic commerce warfare information?
Markets are eyeing the US-China commerce warfare negotiations
Australian Greenback in focus as RBA delivers price determination
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Australian Greenback merchants might be intently watching the RBA’s Money Charge Goal determination at 03:30 GMT. Issues over slower progress and feedback from officers point out a continuation of a cautious and dovish method to coverage. Uncertainty over the commerce wars and China’s financial system have been a key supply of concern.
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AUD/JPY has been trending greater since breaking by the December resistance and has gained over two %. This may be a mirrored image of investor’s optimism over the end result of the US-China commerce talks following the Chinese language Vice Premier’s go to to Washington final week. Washington and Beijing have till March 1 to succeed in an settlement earlier than tariffs (as much as 25 %) are imposed on Chinese language items.
Slower progress in China and indicators of weak spot within the personal sector has weighed on the Aussie and sure re-enforced the RBA’s dovish stance. This comes after experiences from the start of this month – significantly in Constructing Approvals and Retail Gross sales – considerably fell wanting expectations and despatched AUD down. This solely accentuates the broader downtrend AUD/JPY has been on for the reason that begin of final 12 months.
AUD/JPY – Day by day Chart
The pair might begin trying to retest the 78.691-79.055 vary as traders flip defensive amid the bitter financial information. Merchants will now probably be intently looking ahead to feedback from RBA officers and eyeing the developments between Beijing and Washington as the 2 financial superpowers race towards the clock.
AUD/JPY TRADING RESOURCES
— Written by Dimitri Zabelin, Jr Forex Analyst for DailyFX.com
To contact Dimitri, use the feedback part beneath or @ZabelinDimitrion Twitter