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AUD/JPY drops to two-week low of 82.00

The AUD is being offered across the board after China Caixin manufacturing PMI hit 11-month low of 49.6 in May. AUD/JPY hit a two-week low of 82.00 after having hit a session high of 82.73 following the Aussie retail sales release. 

The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 49.6 in May, lower than a 50.1 forecast. A drop below 50.00 represents contraction in the activity. 

The Aussie 10-year bond yield now trades 1.1 basis points (bps) lower on the day at 2.38%. The yield clocked a high of 2.424% following a strong Aussie retail sales release. 

Yen could remain well bid on weak China data

The risk assets could take a hit across the globe in response to weak China data. Consequently, the Japanese Yen could find takers in Europe and US session, thus AUD/JPY stands to lose ground during the day ahead. 

AUD/JPY Technical Levels

The cross was last seen trading around 82.05 levels. A break below 81.82 (Apr 12 low) would open up downside towards 81.49 (Apr 19 low) and 81.00 (zero levels). On the higher side, breach of resistance at 82.54 (5-DMA) could yield a revisit to 82.90 (200-DMA) and 83.37 (50-DMA). 

 

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