AUDJPY tests key support ahead of the BoJ

The Australian dollar has had a terrible start to the week, after a sell-off that was sparked by disappointing Chinese data sent the commodity currency lower across the board. AUDJPY only just managed to hold above a critical psychological level around 90.00.

Chinese data is starting to make a habit of disappointing the market, which isn’t good news for the Aussie. China’s imports unexpectedly fell 0.3% y/y in May, while exports grew by a measly 1.0% over the same period. Consumer prices also increased less than expected at 2.1% y/y, while producer prices fell a staggering 2.9% y/y. At the same time, industrial production is decelerating (9.2% y/y in May vs. 9.3%).

The news out of Australia’s largest trading partner is on the last in a long line of things weighing on the Australian dollar. This latest round of disappointing Chinese data, combined with last week’s better than expected US jobs data, highlights how quick investors are to switch exposure from China to the US. Yet, is the Aussie starting to look oversold?

On the JPY side of the equation, investors are going to be closely watching today’s monetary policy statement and a press conference by the BOJ. We aren’t expecting anything major from the bank, especially on the back of better than expected final Q1 Japanese GDP data over the weekend (4.1% vs. 3.5%), but the market will be focusing on the tone of BoJ Governor Kuroda.

Источник: Forex.com

10.06.2013