This article is originally referred from TitanFX Forex News
- The Aussie dollar was crushed recently versus the Japanese yen, as the AUDJPY pair traded below 77.00. Can it test 76.00?
- There was a bearish trend line formed on the hourly chart of the AUDJPY pair, which was acting as a downside move catalyst.
- In Australia, the Retail Sales released by the Australian Bureau of Statistics posted a rise of 0.1% in June 2016, compared with the forecast of 0.4%.
- In Japan, the foreign investment in Japan stocks released by Ministry of Finance came in at ¥312.1B.
AUDJPY TECHNICAL ANALYSIS
The Aussie dollar tumbled recently and traded below the 77.00 support area. The AUDJPY pair was earlier following a bearish trend line formed on the hourly chart, but later broke it.
The pair tested the 38.2% Fib retracement level of the last drop from the 78.18 high to 76.50 low and found sellers. It is currently moving down and may test the broken trend line, which might act as a support area.
On the downside, the 76.50 support area holds a lot of importance. A break below it could clear the way for more declines in the near term, which may take the pair towards 76.00.
AUSTRALIA RETAIL SALES
Earlier during the Asian session, the Australian Retail Sales report was released by the Australian Bureau of Statistics. The forecast was slated for an increase of 0.4% in goods sold by retailers is based on a sampling of retail stores of different types and sizes in June 2016, compared with the previous month.
However, the result was disappointing, as there was an increase of 0.1% in June 2016. The report added that the “following industries rose in trend terms in June 2016: Other retailing (0.5%), Cafes, restaurants and takeaway food services (0.4%), Clothing, footwear and personal accessory retailing (0.5%) and Department stores (0.1%). Food retailing (0.0%) and Household goods retailing (0.0%) were relatively unchanged in trend terms in June 2016”.
The Aussie dollar was impacted after the report, as the recent rejection was mainly due to disappointing retail sales data.
BOE INTEREST RATE DECISION
Later during the London session, the BoE Interest Rate Decision will be announced by the Bank of England. The forecast is slated for a reduction in rates from 0.5% to 0.25%. The number of votes in favor of a rate cut is expected 8.
So, it would be interesting to see how the British Pound trades in the near term if there is a rate cut. Other major currencies may also be impacted in the short term.
Original Source: TitanFX Forex News