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AUD/JPY firms above 114.50 on stronger China data support
Stronger-than-expected August Chinese manufacturing PMI lifted to 51.5 from 50.9, adding support to the China-proxy Australian dollar versus the yen.
AUD/JPY was trading above 114.50 and around 114.60 in early European trade, with the pair holding a bullish near-term technical tone as it stays above key moving averages, FXStreet reported.
The move received support from stronger-than-expected Chinese data, with China’s manufacturing PMI rising to 51.5 in August from 50.9 in July, beating consensus forecasts of 50.9, which helped underpin the Australian dollar against the yen.
On the Japan side, markets are pricing in a Bank of Japan hike later this month, with analysts noting the probability is high but also arguing the BoJ may face constraints and would need stronger follow-through to extend yen gains.
Technically, FXStreet said AUD/JPY’s momentum remains positive while it holds above the 100-day moving average and the Bollinger 20-period simple moving average, with resistance near 114.96 and the upper Bollinger band around 115.30, while support sits in the 113.25 to 113.20 area.