Feel like trading AUD/JPY today?
Before we talk charts, check out the top headlines that influenced Asian session traders:
- Fed’s Quarles”: the Treasury market may be so big that the Fed can’t step away
- BOC’s Deputy Lane: pandemic means central banks must ‘move faster’ on digital currency plans
- Mnuchin says coronavirus aid deal unlikely before U.S. election, will keep trying
- Germany tightens Covid-19 restrictions, and Merkel warns more may be needed
- RBA governor Philip Lowe says board considering another cash rate cut
- The RBA is reviewing three key issues on policy easing
- Australia’s unemployment rate edges up to 6.9% in September
- Australia’s pay growth, inflation expectations higher in October
- China’s inflation struggles to perk up despite broader recovery
- Global shares slip on pandemic surge, failing stimulus hopes
- Australian dollar slips, bonds rally as RBA sounds dovish
Upcoming Potential Catalysts on the Economic Calendar:
- EU’s Economic Summit begins today
- Switzerland’s PPI at 6:30 am GMT
- Canada’s ADP non-farm employment change at 12:30 pm GMT
- Philly Fed manufacturing index at 12:30 pm GMT
- Initial jobless claims at 12:30 pm GMT
- NY manufacturing index at 12:30 pm GMT
What to Watch: AUD/JPY
The biggest story during the Asian session was Reserve Bank of Australia (RBA) Governor Philip Lowe hinting that he and his gang are considering another rate cut AND maybe purchasing long-term bonds in the foreseeable future.range support that had been solid in the three other times that it was tested since late September.
Will the bulls step up for another day? Take note that Stochastic is hinting at a bullish divergence around the 75.00 MaPs (“Major Psychologically Significant”) levels.
If the bearish momentum keeps up during the London session, however, or if Brexit and EU Summit updates cause another round of risk aversion in the markets, then we could see AUD/JPY finally break below the range and maybe retest areas of interest closer to 74.50.
AUD/JPY has already dropped by half of its daily average volatility, so remember to keep your stops and targets realistic when placing them trading orders!