AUD/JPY rests above 50-DMA ahead of Aussie data

Better-than-expected China August PMI figure helped AUD/JPY stay above 50-DMA level of 77.57 levels ahead of the Australian retail sales release.

Awaits Aussie retail sales and China Caixin PMI

The data due in Australia in a few minutes from now is expected to show retail sales rose 0.3% in July. Meanwhile, China Caixin PMI is likely to show the manufacturing activity narrowly avoided contraction in August.

Aussie dollar is usually considered as proxy for China; hence the currency is likely to feel the heat of both China as well as Australian data. China official PMI released earlier today showed the manufacturing activity expanded in August. That helped AUD/JPY cross from the low of 77.59.

AUD/JPY Technical Levels

Acceptance below 50-DMA Level of 77.57 would expose 77.35 (5-DMA), under which the psychological level of 77.00 could be put to test. On the higher side, breach of resistance at 78.09 (61.8% of Brexit day high/low) could yield a test of 100-DMA level of 78.97. A violation there would expose 79.42 (76.4% of Brexit day high/low).