AUD/JPY rejected at 87.00 on evidence of ‘peak inflation’ in Australia

AUD/JPY was offered at 87.00 handle after the data released in Australia added credence to the ‘peak inflation’ argument.

The pair clocked an intraday low of 83.50 levels and was last seen trading around 83.63 levels.

What’s peak inflation?

Peak inflation is the word coined for potential rollover of inflation expectations and commodity prices. The data released in the advanced world over the last one month or so showed the CPI growth has stalled.

The latest to join the bandwagon is Australia. The data released today showed the first quarter headline CPI remained unchanged at 0.5% as opposed to the expected rise to 0.6%. The RBA’s ‘trimmed mead’ or core inflation did beat estimates, but failed to keep the AUD bid.

AUD/JPY Technical Levels

A breakdown of support at 83.23 (Apr 4 low) would open door for 82.97 (5-DMA), under which the losses could be extended to 82.18 (200-DMA). On the higher side, only a daily close above 83.82 (Mar 28 low) could yield a sustained rally to 85.05 (50-DMA) and 85.38 (100-DMA).