AUD/JPY eyes 79.50 mark as risk sentiment improves

• AUD/JPY edges higher on Tuesday in the early European trading session.
• AUD remains grounded on improved risk appetite, vaccine optimism.
• Yen pares part of its gain on worsening COVID-19 situation in the home country. 

AUD/JPY edges higher on Tuesday in the European session. The cross extends the previous session’s gains and inched closer toward Thursday’s high of 79.58.

At the time of writing, AUD/JPY is trading at 79.37, up 0.39% for the day.

The Aussie gains on improved risk sentiment as global equity rose on the full approval of Pfizer/BioNTech COVID-19 vaccine by the US drug regulator.

In the recent update, the extension of lockdowns in other states in Australia weighed on the prospects of the Australian dollar. New South Wales, remained the hardest-hit state with over fresh 750+ news cases on weekend. 

It is worth noting that S&P 500 Futures were trading at 4,479, up 0.85% for the day.

On the other hand, the yen remained submissive as a preliminary reading showed Japan’s Manufacturing growth slowing in August, and services activity shrank the most in 15 months.

A slower vaccination rollout program and lockdown restriction kept the currency pressurized.

Buoyed market sentiment boosts the riskier assets and reduces the demand for the safe-haven asset.

AUD/JPY additional levels