AUD/JPY dips below 86.00 on China CPI data

The offered tone around the Australia dollar gathered pace, pushing the AUD/JPY cross below 86.00 levels after China CPI figure printed at the lowest level since January 2015. 

Offered above 50-DMA

The pair faded the spike above the 50-DMA level of 86.13 and extended losses to a session low of 85.96. China CPI printed at 0.8% vs. 1.7% exp. This was the lowest reading since Jan 2015. 

Moreover, the weak CPI overshadowed the rise in the factory gate prices/PPI to 7.7% in Feb. This was the fastest rate since 2008. The improvement in the global reflation story failed to lift the Aussie dollar. 

AUD/JPY Technical Levels

The pair was last seen trading around 86.00 levels. A breakdown of support at 85.84 (Feb 27 low) would expose 85.20 (Jan 31 low) and 85.00 (zero figure) levels. On the other hand, a break above 86.12 (50-DMA) could yield a re-test of 86.30 (5-DMA) and 86.42 (10-DMA).