AUD/JPY regains 87 and beyond, G20 in focus

The recovery in AUD/JPY cross gains traction in late-Asia, sending the rate back above 87 handle, mainly in response to fresh AUD buying across the board.

The Aussie caught a fresh bid-wave as positive sentiment around the Australian stocks boost the risk-on flows around the higher-yielding currency AUD. Meanwhile, a tepid bounce seen in oil prices also offered some support to the commodity-currency.

On the JPY-side of the equation, the USD/JPY pair steadies below 113.50, as investors turn cautious ahead of the G20 meeting, especially with the key focus on Trump-Merkel meeting, which will drive the market sentiment in the day ahead. Also, a fresh set of US data will remain in focus for fresh take on both the AUD and JPY.

Technical Levels

Higher side: 87.50/58 (psychological levels/ Fib R2), 88.17/23 (Feb 15 & 16 high), 88.50 (key resistance)

Lower side: 86.73/62  (10 & 20-DMA), 85.78/80 (100-DMA/ Feb-end lows), 85.50 (psychological levels)