AUD/JPY – Off lows ahead of China Caixin PMI release

AUD/JPY cross has recovered from the session lows as markets shrugged off weak China government PMI figure and await the release of private PMI number.

Eyes Caixin PMI

China Caixin PMI, a private gauge of nationwide factory activity, is likely to show the pace of contraction in the activity eased somewhat in July. The PMI is seen rising to 49.9 from 48.6 in June. The government figure released earlier today stands at 49.9 compared to the estimate of 50.00.

Aussie-Dollar is struggling to take out 0.76 handle following sharp rally on Friday, meanwhile, Dollar-Yen is up slightly around 102.50. Thus, AUD/JPY cross recovered from the 77.43 to print a high of 77.90 levels. The cross was last seen trading around 77.80.

AUD/JPY Technical Levels

The immediate hurdle is seen at 78.09 (61.8% of Brexit day drop), above which 50-DMA of 78.34 could be put to test. A violation there could yield 79.42 (76.4% of Brexit day drop). On the other hand, a breakdown of support at 77.43 (daily low) would expose 77.00 (50% of Brexit day drop), under which cross could target 76.71 (June 17 low).