8 Jul 2015
AUD/JPY drops below 90, a new risk barometer?
FXStreet (Mumbai) - The offers on Aussie pushed the AUD/JPY cross below 90.00 levels amid the chaos in the Chinese equities and increasing fears of Grexit.
A new risk barometer?
The Aussie is being punished by the triple whammy of falling iron ore prices, Chinese stock market rout and the Grexit fears. Meanwhile, the Japanese Yen is taking its role of traditional safe haven seriously, as it continues to strengthen on account of risk aversion due to the rout in Chinese equities and Grexit fears. Consequently, it appears the AUD/JPY cross has taken up the role of a new risk barometer in the currency markets.
Ahead in the day, the JPY could be favoured by the risk averse investors ahead of the Fed minutes, while the weakness in the commodity prices and a more than 5% drop in the Chinese equities could keep the AUD under pressure.
AUD/JPY Technical Levels
The pair currently trades at 89.66; down 1.8% on the day. The support is seen at 89.31 (Feb low) and 88.50. On the flip side, resistance is seen at 90.15 and 91.72 (Oct 2014 low).
A new risk barometer?
The Aussie is being punished by the triple whammy of falling iron ore prices, Chinese stock market rout and the Grexit fears. Meanwhile, the Japanese Yen is taking its role of traditional safe haven seriously, as it continues to strengthen on account of risk aversion due to the rout in Chinese equities and Grexit fears. Consequently, it appears the AUD/JPY cross has taken up the role of a new risk barometer in the currency markets.
Ahead in the day, the JPY could be favoured by the risk averse investors ahead of the Fed minutes, while the weakness in the commodity prices and a more than 5% drop in the Chinese equities could keep the AUD under pressure.
AUD/JPY Technical Levels
The pair currently trades at 89.66; down 1.8% on the day. The support is seen at 89.31 (Feb low) and 88.50. On the flip side, resistance is seen at 90.15 and 91.72 (Oct 2014 low).