- Crucial PMI data releases to dictate Japanese Yen strength.
- Major Asian supply-chain economies will release vital statistics
- But, AUD/JPY up-move looks exhausted for now
NASDAQ led the Wall Street indices on Friday, closing up by 1.49 Percent; the Dow Jones and S&P 500 clocked 0.44 and 0.77 Percent gains in the same day. Apple Inc., APPL, went up by 10 Percent for the day and its higher weightage in the index might account for the comparatively better performance by the NASDAQ.
Technology stocks are in a strong uptrend recently; especially after an earning week when four of the five constituents of the FAANG group, posted impressive earnings. Only Alphabet- the parent company of Google, failed to impress in this group – consisting of Facebook, Apple, Amazon, Netflix and Google. The company had posted its first year-over-year quarterly revenue decline.
Meanwhile, foreign exchange markets were not in a risk-on mood as reports emerged that another stimulus bill from US lawmakers might not be on the table soon. This news helped US Dollar to recover some of its recent losses as it triggered a flight to safety. Euro traded weaker as Q2 GDP showed record-breaking lows; AUD and NZD showed a lack of strength along with Swedish Krona.
Asia-Pacific Trading Session Today
Japanese Yen’s strength in recent days due to its anti-risk appeal may weaken if the Asia-Pacific supply chain economies manage to record bright growth outlook in a slate of PMI numbers to be released today.
The surge in Covid-19 cases had helped JPY earlier, which might weaken, and the traders could fancy the bull case for Australian and New Zealand Dollars.
AUD/JPY Hits Strong Resistance
A resistance area between 75.925 and 76.320 is proving to be tough for AUD/JPY to breakthrough; the pair has failed to penetrate the upper tier in early-June and mid-July. Now, the bulls might face even more difficulty in staying above even the lower layer of the resistance. The chances of a pullback are currently higher than a substantial upside, especially after the most recent capitulation.
