AUD/USD had a steady impulsive gain after the break below the trendline yesterday. JPY has shown a good number of gains in every pair with positive trade balance report today at 0.68T which was expected to be at 0.55T. On the other hand, yesterday AUD had a positive outcome of HPI at 4.1% which was forecasted at 2.4% but today as of RBA Assistant Governor Debelle quite did not impress the market with his upcoming interest rates policies which lead to a drastic fall of AUD. This week there will be no AUD fundamental events to take place but JPY has Flash Manufacturing PMI to be released on Friday which expected to have a slightly better figure at 53.5 which previously was at 53.3. As of fundamentals, AUD is set to lose its ground against JPY this week.
Now let us look at the technical view, the price has dropped below the support of 86.17-28 and currently showing some bearish rejection in the mid-air. As a good number of impulsive moves have been taking place from yesterday, currently the price is expected to retrace toward the new resistance 86.17-28 and if we see any rejection of the level we will be looking forward to selling with a target toward 83.70.
