AUD/JPY retakes 1-hour 50-MA on strong Aussie data

AUD/JPY moved back above the 1-hour 50-MA level of 87.03 after the NAB business conditions printed at highest since 2007.

Trades above 87.00, eyes China CPI

The cross was last seen trading around 87.05 levels. The next major data to watch out for is the Chinese consumer price index and producer price index release. Risk sentiment could get a shot in the arm if the producer price index betters estimate of 6.3%.

Moreover, the sharp rise in the producer price index indicates the world’s second largest economy is exporting inflation to the global economy.

AUD/JPY Technical Levels

The immediate hurdle at 87.18 (Friday’s high) if breached would expose 87.50 (previous day’s high), above which the psychological figure of 88.00 could be put to test. On the other hand, a breakdown of support at 86.80 (session low) could yield a pull back to 5-DMA level of 86.55 and 86.27 (10-DMA).