AUD/JPY clings to mild gains above 92.00 amid upbeat China data, softer yields

• AUD/JPY prints three-day uptrend as it grinds higher after upbeat China data.
• China Caixin Services PMI traces other activity data to propel Australian Dollar (AUD).
• Pullback in key Treasury bond yields from multi-month high probe AUD/JPY buyers.
• Japan inflation, Unemployment Rate eased, Aussie PMIs improved, housing numbers deteriorate.

AUD/JPY picks up bids to print mild gains around 92.15 as it cheers the three-day winning streak during early Friday. In doing so, the cross-currency pair cheers upbeat data from the biggest Aussie customer, namely China. However, mixed figures from Japan and Australia join a pullback in the US Treasury bond yields to restrict the quote’s immediate upside.

That said, China’s Caixin Services PMI traced the latest activity data for the dragon nation while printing 55.00 figures for February, versus 50.0 market forecasts and 52.9 previous readings.

On the other hand, Japan’s Consumer Price Index (CPI) for February eased to 3.4% YoY versus 4.1% expected and 4.4% prior while the Unemployment Rate also eased to 2.4% compared to 2.5% market forecasts and previous readings. Furthermore, Australia’s S&P Global PMIs for February came in firmer and helped the AUD/JPY buyers to keep the reins. Though, downbeat prints of Australia Home Loans and Investment Lending for Homes, for January, seem to cap the quote of late.

Elsewhere, the US-China tension at the Group of 20 Nations (G20) meeting, amid the former’s push for sanctions on countries having strong ties with Russia and aiding Moscow in the war with Ukraine, previously probed the AUD/JPY price. However, chatters of the likely resumption of the Sino-American trade talks seemed to have pushed back the risk-off mood afterward and allowed the pair to recover.

While portraying the mood, the 10-year coupons drop two basis points to 4.05% while its two-year counterpart seesaws around 4.89% by the press time. Further, S&P 500 Futures struggle for clear directions after mild losses.

Looking ahead, AUD/JPY traders should pay attention to the US Treasury bond yields amid a light calendar ahead of the US ISM Services PMI for February, expected at 54.5 versus 55.2 marked in January. Should the bond coupons extend the latest pullback, the AUD/JPY may witness hardships in rising further.

Technical analysis

Unless providing a daily close beyond the 100-DMA, around 92.10 by the press time, the AUD/JPY upside remains elusive.