The cross remains above 111.75 after China’s services PMI eased to 54.1 in June, supporting AUD demand amid intervention risks.
The AUD/JPY pair traded around 111.75 in early European trading, supported by stronger-than-expected Chinese services data. China’s June Services PMI dipped to 54.1 from May’s 54.4 but marked the third-strongest expansion in nearly three years, boosting confidence in Australia’s export-driven economy.
Despite the positive data, upside potential remains constrained by fears of Japanese currency intervention. Japan’s Finance Minister indicated readiness to act on excessive yen volatility, adding pressure on the pair. Technical indicators suggest a bearish bias, with the cross holding below key moving averages.
Initial support lies near 111.15, while a break above 112.40 could signal a short-term reversal. The Relative Strength Index hovers near 40, reflecting cautious sentiment.