Risk assets like crude oil and AUD are starting the week on a strong note!
Will this lead to new monthly highs for AUD/JPY?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. Treasury Secretary Janet Yellen on Sunday says there are “simply no good options” for solving the debt limit stalemate other than raising the cap, warns that failure of Congress to act could lead to a “constitutional crisis.”
European Union plans sanctions against Chinese firms “supporting Russia’s war machine” – FT
Binance paused bitcoin withdrawals twice due to a “large volume of pending transactions”
BOJ’s March meeting minutes showed that “some” members want to watch the “risk of prices rising more than expected” but agreed that “extremely high” uncertainties remain enough to warrant easy monetary policies.
Strong increases in travel, leisure, and tourism pushed Japan’s services activity by a record pace in April, with the final au Jibun Bank services PMI up from 55.0 to 55.4
Australia’s building approvals are down by 0.1% vs. 3.9% in February, 3.0% expected
Australia’s NAB business confidence is slightly higher from -1 to 0, suggesting a balanced outlook in April
Germany’s industrial output dropped by 3.4% in March vs. 2.1% in February, 1.3% expected
Price Action News
Overlay of AUD Pairs 15-min
With not a lot of top-tier reports released, Asian session traders focused on catching up to the risk-taking brought about by Friday’s better-than-expected NFP report.
Easing U.S. recession fears particularly benefited AUD, which made new daily highs after revisiting the post-NFP report lows seen on Friday.
There are no major releases scheduled in the next trading sessions, so prices will likely take cues from risk sentiment as well as the Fed’s quarterly loan survey hinting at the impact of the regional banking crisis.
Eurozone Sentix investor confidence at 8:30 am GMT
Federal Reserve’s survey of loan officers at 6:00 pm GMT
FOMC financial stability report at 8:00 pm GMT
U.K. BRC retail sales monitor at 11:01 pm GMT
Japan’s average cash earnings and household spending at 11:30 pm GMT
AU Westpac consumer sentiment at 12:30 am GMT (May 9)
AU retail sales at 1:30 am GMT (May 9)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
AUD/JPY 15-min Forex Chart by TV
AUD/JPY is testing key intraday resistance zones and it’s only been a few hours to the week!
As you can see, the pair is flirting with the 91.50 minor psychological handle that’s riiiiight at the R1 (91.42) level of today’s Standard Pivot Points.
Will AUD/JPY hit higher resistance levels today?
Take note that AUD/JPY has already risen by half of its 96-pip daily average volatility.
Stochastic is also showing an “overbought” sign though the moving averages and the last few candlesticks still point to further demand.
Keep an eye out for a clear break above 91.50, which could push AUD/JPY to the 92.00 handle near the R2 (91.90).
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