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AUD/JPY finds the brakes just above 82.00

8/9/2018, 1:45:00 PMTrading Strategies
AUD/JPY finds the brakes just above 82.00

The AUD/JPY is trading into 82.20 as broader market sentiment goes risk-off for Thursday, but a positive spin in the China CPI and PPI readings are giving traders cause for pause amidst the flights back into safety.

The Aussie has halted its slide against the Japanese Yen after China's Consumer Price Index and Producer Price Index both beat expectations, implying that the current escalation in the US-China trade war is not having nearly as big a negative effect as many market participants have been fearing. 

China's y/y CPI for July came in at 2.1%, beating the expected flat-line from the previous reading of 1.9%, while July's y/y PPI also beat estimates, printing at 4.6% versus the expected 4.5%, and only slightly softening against the previous period's 4.7%.

Knock-on concerns from China will continue to remain a key sticking point for Aussie traders for the time being, but for now the main focus will be turning to Friday's Reserve Bank of Australia (RBA) Monetary Policy Statement, due early Friday at 01:30 GMT.

AUD/JPY levels to watch

This week has been a halting affair for the Aussie, with the AUD/JPY trading closely to current lows near the 82.00 major handle, though bullish attempts are lacking dedication, with the pair quickly falling away from this week's high of 82.80, and the pair is looking set to remain trapped in consolidation that has held the AUD/JPY for the better part of 18 straight weeks.