AUD/JPY – recovery continues despite dismal Aussie data ahead of RBA

The recovery in AUD/JPY continues ahead of RBA rate decision even though Australia reported dismal housing and trade balance figure.

Off lows but weak, RBA eyed

The cross recovered from the low of 76.99 and now trades around the session high of 77.40 levels. Australia's trade deficit widened to -3.195 bn in June vs -2bn exp and -2.218bn seen in May. Meanwhile, easonally adjusted estimate for total dwellings approved fell 2.9% in June.

The dismal data failed to suppress the cross, which is on a recovery mode despite the probability of RBA rate cut having ticked higher from roughly 70% yesterday to 76% today. Aussie pairs now eye RBA rate decision.

AUD/JPY Technical Levels

The immediate resistance is seen at 77.50 (Friday’s low), above which the pair could target 77.97 (5-DMA). On the other hand, a breakdown of support at 77.00 (50% of Brexit day high-low) would open doors for a slide to 76.71 (June 17 low).