Day by day U.S. Session Watchlist: AUD/JPY

Evergrande woes are again in play and weighing on the higher-yielding Aussie.

Will risk-off flows persist the upcoming session?

Let’s assessment headlines that rocked the markets within the final trading sessions:

Recent Market Headlines & Financial Information:

Evergrande misses $180 million interest payment, ASX to four-month low

Australia’s AIG manufacturing index down from 51.6 to 51.2

PM Morrison: Australia to reopen international borders by November 

Japanese unemployment fee regular at 2.8% vs. 2.9% forecast

Japan’s Tankan manufacturing index up from 14 to 18

Japan’s Tankan non-manufacturing index up from 1 to 2

Japanese client confidence index rose from 36.7 to 37.8

Japanese remaining manufacturing PMI upgraded from 51.2 to 51.5

U.S. President Biden signs stopgap bill to fund gov’t until Dec. 3

Asian stocks extend slide on inflation woes, Evergrande fears

Crude oil takes hits as OPEC mulls another production increase

German retail gross sales rose by 1.1% versus 1.6% estimate

Upcoming Potential Catalysts on the Economic Calendar:

Canadian month-to-month GDP at 12:30 pm GMT
U.S. core PCE worth index at 12:30 pm GMT
U.S. ISM manufacturing PMI at 2:00 pm GMT
U.S. revised UoM client sentiment index at 2:00 pm GMT

When you’re not conversant in the foreign exchange market’s most important buying and selling classes, try our Forex Market Hours device.

What to Watch: AUD/JPY

AUD/JPY 1-hour Forex Chart
AUD/JPY 1-hour Foreign exchange Chart

Market watchers are feeling additional jittery once more, as Chinese language property developer Evergrande missed its $180 million curiosity cost to traders.

That is the second time in every week that the cash-strapped firm has failed to satisfy its cost deadline, spooking merchants into worrying that this might have monetary repercussions worldwide.

With that, merchants may flock again to safe-haven holdings just like the U.S. greenback and the Japanese yen. On the identical time, higher-yielding currencies just like the Aussie may get dumped.

On the 1-hour chart of AUD/JPY, I’m seeing a head and shoulders reversal sample, with worth already testing the neckline help.

A break beneath this might set off a drop that’s the identical peak because the chart formation, which is a little bit over 100 pips.

The 100 SMA is above the 200 SMA, however the pair has already damaged beneath the latter as an early sign of bearish momentum. Simply watch out when shorting since Stochastic is already dipping into the oversold area!

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