- AUD / JPY is struggling to maintain rebounds of 76.59 after moving away from monthly high near 76.75.
- Market sentiment turns sour as China-U.S. Tensions and coronavirus concerns escalate ahead of the key Jackson Hole symposium.
- Suzuki speech from BOJ, Australian private investment spending may offer intermediate moves.
AUD / JPY attacks intraday high near 76.70 as Tokyo markets open for Thursday trading. Even so, the risk barometer remains below yesterday’s high, also the monthly high, marking 76.76. As a result, the Bulls await a strong push to score the four-game winning streak.
While the general risk mood appears to have favored the previous rise in the quote, the latest cautious moves could be attributed to the market’s wait for speeches from central bankers in Jackson Hole, Wyoming.
The latest claims that the World Health Organization (WHO) only sent a two-person team to China to investigate the coronavirus (COVID-19), neither of whom visited the Wuhan epicenter , could also influence the tone. This is in addition to the recently strained relationship between Beijing and Washington following the dragon’s display of power during military exercises in the South China Sea and likely US sanctions against companies supporting the act.
It should be noted that Victoria’s COVID-19 numbers stabilized around 150-130 against Tokyo’s recently increased virus numbers, 236 for Wednesday.
Amid all of these catalysts, the S&P 500 Futures is down 0.14% while 10-year US Treasury yields also decline to around 0.68% at press time.
BOJ board member Hitoshi Suzuki’s speech will join Australian data around 01:30 GMT to offer intermediate moves for the pair ahead of key Jackson Hole speeches. However, markets won’t ignore the latest battle between the US and China if they witness any major news, which in turn could weigh on the pair.
Unless they manage to break through 77.00, the bulls will likely remain cautious. On the contrary, bears will not risk entering until the quote is above 75.60.