The RBA is about to drop its latest meeting minutes!
Will the event extend AUD/JPY’s downswing?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
China’s GDP grew by 0.8% in Q2 2023, slower than the 2.2% quarterly growth in Q1. Annual GDP came in at 6.3%, faster than Q1’s 4.5% uptick but slower than the 7.1% growth expected
China’s industrial production up by 4.4% y/y in June vs. 2.5% expected, 3.5% in May
China’s retail sales slowed down from 12.7% to 3.1% y/y in June
China’s fixed asset investment increased by 3.8% ytd/y vs. 3.4% expected, 4.0% in May
Crude oil prices down 1% on weak China GDP data, resumption of Libya output
Price Action News
China’s GDP and data dump was the biggest story of the Asian session, as the growth rate of the world’s second-largest economy missed its market estimates in Q2 2023.
The GDP miss, combined with profit-taking from last week’s gains and caution ahead of this week’s U.S. earnings reports, weighed on risk assets in general.
AUD took most of the hits as it dropped against most of its major counterparts before steadying during the early London session.
Upcoming Potential Catalysts on the Forex Economic Calendar:
ECB President Lagarde to give opening remarks in Frankfurt at 8:15 am GMT
Canada’s wholesale sales at 12:30 pm GMT
U.S. NY manufacturing index at 12:30 pm GMT
RBA’s meeting minutes at 1:30 am GMT (July 18)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
AUD/JPY: 15-min
If you’re looking at AUD pairs today, then you’ve probably noticed that AUD/JPY, like many AUD pairs, started the day on a weak note.
Are the bears done selling?
AUD/JPY is chillin around the 94.50 mark, which coincides with the S1 (94.48) level of today’s Pivot Points. Coincidentally, it’s also around the halfway mark of AUD/JPY’s daily average volatility.
However, it’s looking like the S1 zone is serving as resistance after becoming a support earlier in the day.
So, unless we see a market-changing catalyst, then AUD/JPY could extend its downswing and head for new intraday lows. Keep an eye out for the S2 (94.00) levels or the previous lows closer to 93.70.
If you see AUD/JPY breaking and staying above S1, though, then you should also be ready for a potential bounce to the 100 and 200 SMA areas.
Watch this one closely, yo!
