AUD/JPY pierces 94.00 on upbeat China data, rebound in yields

• AUD/JPY takes the bids to refresh intraday high but stays inside short-term trading range.
• China’s official PMIs for June came in better than previous, yields bounce off weekly low.
• Downbeat Japan data adds strength to the corrective pullback.
• Market sentiment remains sour amid recession, inflation fears.

AUD/JPY renews intraday high around 94.15 as the quote cheers upbeat data from China, as well as a rebound in the US Treasury yields, during Thursday’s Asian session.

That said, China’s preliminary readings of official PMIs for June came in better than previous with the headline NBS Manufacturing PMI rising to 50.2 versus 49.6 prior, versus 50.4 forecasts. Further, Non-Manufacturing PMI rallied to 54.7 versus 52.5 expected and 47.8 in previous readings.

Earlier in the day, preliminary readings of Japan’s Industrial Production for May slumped to -7.2% MoM versus -0.3% expected and -1.5% prior.

It’s worth noting that the US 10-year Treasury yields snap a two-day downtrend as the key bond coupons rebound from the weekly low to 3.10%, up one basis point (bp).

Even so, fears that central bankers are firm in their determination to battle the inflation woes, even at the cost of short-term economic slowdown, seem to weigh on the risk appetite and drown the S&P 500 Futures, down 0.30% to 3,825 at the latest.

In addition to the recession fears, AUD/JPY buyers also witness hardships due to the market’s anxiety ahead of the Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index, for May, expected 0.4% MoM versus 0.3% prior.

Technical analysis

Bearish MACD signals and steady RSI keeps AUD/JPY sellers hopeful even though the quote seesaws between the monthly support line and a three-week-long resistance line, respectively around 93.60 and 94.40.