FxWirePro: AUD/JPY Daily Outlook

Chart - Courtesy Trading View 

AUD/JPY was trading 0.19% higher on the day at 91.90 at around 09:40 GMT.

The pair has trimmed some of the day's gains and has retraced from session highs at 92.23.

Hopes that the easing of COVID-19 restrictions in China would boost the global economy overshadowed the mixed official Chinese PMIs, supporting the risk-sensitive aussie.

China’s official activity numbers marked contraction for May as the headline NBS Manufacturing PMI matched 49.6 forecasts, versus 47.4 prior, while the Non-Manufacturing eased to 47.8, below 50.7 market consensus.

Additionally, Australia’s Building Permits for April shrank to -2.4% compared to 2.0% expected growth and -18.5% in previous readings.

Reserve Bank of Australia's hawkish signal that a bigger interest rate hike is still possible in June keeps bias bullish.

Technical bias for the pair is also bullish. GMMA shows minor trend has turned bullish. 

Support levels - 90.98 (5-DMA), 90.89 (21-EMA), 90.21 (55-EMA)

Resistance levels - 92.60 (Cloud top), 93, 93.15 (Upper BB)

Summary: AUD/JPY poised for further upside. Scope for test of cloud top, break above will fuel further upside.