AUD/JPY revisiting Monday’s low ahead of China data

Offered tone around AUD/JPY gathered pace ahead of China data release, setting the pair on track towards Monday’s low of 96.42 levels.

China data – Not expecting a blow out number

The immediate focus is on China data due today, which is expected to show pace of industrial production growth rose to 6.2% in August from July figure of 6.0%. Retail sales growth is seen unchanged at 10.2%.

Despite the recent stability in China data, the overall trend represents an economy that is decelerating and thus could need another round of monetary easing. Traders should note that a retail sales print below 10% (in single digits) would be the lowest in over a decade.

The cross was last seen trading around 76.65 levels. The Asians session high stands at 76.13.

AUD/JPY Technical Levels

Breakdown of support at 76.42 (previous day’s low) would open doors for 75.93 (38.2% of Brexit day high-low), under which a major support is seen at 75.05 (July 8 low). On the other hand, breach of hurdle at 77.00 (50% of Brexit day high-low) could yield 77.46 (previous day’s high). A violation there would expose 78.09 (61.8% of Brexit day high-low).