AUD/JPY pierces 68.00 on upbeat Aussie trade data

• AUD/JPY cheers welcome prints of Australia’s preliminary trade statistics.
• Wednesday’s risk recovery fails to stay long as fears of ‘two viruses’ in the US, Iran-US conflict recall the pessimists.
• BOJ will have a one-day meeting on April 27, Jibun Bank PMI bears the burden of the coronavirus outbreak in Japan.
• Japanese Coincident Index, Leading Economic Index in focus, for now.

AUD/JPY cheers upbeat preliminary figures of Australia’s March month trade data while taking the bids to 68.03 during the early Thursday.

Read: Preliminary Aussie Trade Balance: Goods exports rose $8 billion or 29 per cent in March 2020

While benefiting from the data, the pair ignores, for the time being, the earlier risk-off. Market’s risk-on sentiment, portrayed the previous day, failed to last long as the US coronavirus task force briefings cited fears that the flu outbreak is also a concern for the policymakers. Also weighing on the trade sentiment was US President Donald Trump’s threat to Iran.

That said, the US 10-year Treasury yields and the US stock futures mark mild losses by the press time.

Earlier during the day, the preliminary reading of Japan’s March month Jibun Bank Manufacturing PMI, for April, slipped below 44.8 prior to 43.7. The reason could be traced from the Asian nation’s month-long lockdown to combat the virus outbreak.

Moving on, Japan’s February month Coincident Index and Leading Economic Index, expected to remain unchanged near 95.8 and 92.1 respectively, may offer immediate direction to the pair. However, major attention will be given to Monday’s BOJ meeting wherein the central bank is largely expected to downgrade economic forecasts.

Technical analysis

While a five-week-old ascending trend line limits the pair’s short-term downside near 67.00, ahead of 21-day SMA level around 67.35, buyers will have to successfully cross 50-day SMA level of 68.51 to aim for the monthly top near 69.30.