FXStreet (Mumbai) - The cross in the AUD/JPY received a double blow from the China PMI-sparked deepening risk-off sentiment as the Aussie remains heavily dumped while yen strengthened versus the greenback.
AUD/JPY plunges from 95.20 levels
Currently, the AUD/JPY pair trades -1.19% lower at 84.17, hovering close to fresh two-week lows of 84.0. The AUD/JPY cross remains relentlessly offered and fell more than 100 pips as the tepid Chinese data refuelled worries over the country’s economic outlook, thus weighing heavily on China’s biggest trading partner – Australia.
While, resurfacing China slowdown fears triggered a renewed bout of risk-aversion across the financial markets in Asia, which bolsters the safe-haven bids for the Japanese yen, adding to further downside in the AUD/JPY cross.
Risk-off flows remains in vogue as Asian equities extend the drop, with the Hong Kong’s benchmark, Hang Seng losing more than 3% and Shanghai Comp down -1.50%. While Australia’s ASX declines nearly -2%. Japan remains closed on a national holiday.
In the day ahead, the cross is likely to remain influenced by the persisting broader market sentiment ahead of US manufacturing PMI report.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 85.21 (Today’s High) levels and above which it could extend gains to 86.12 (Sept 14 High) levels. To the downside immediate support might be located at 83.29 (Sept 10 Low) below that at 82.48 (Sept 8 Low) levels.
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