The AUD/JPY currency pair trades slightly higher around 93.10 during early European trading on Wednesday. Despite this modest gain, the overall outlook remains bearish as the pair stays below its key 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) sits near neutral, suggesting possible sideways movement or short-term consolidation.
Economic Data Weakens Australian Dollar
The Australian Dollar is under pressure following disappointing economic data. The Australian Bureau of Statistics (ABS) reported that Australia’s Gross Domestic Product (GDP) grew by only 0.2% in the first quarter of 2025. This growth rate fell short of the 0.4% forecast and was weaker than the previous quarter’s 0.6% increase. On an annual basis, GDP expanded by 1.3%, matching the prior quarter but below the expected 1.5% rise.
Technical Levels to Watch
Support: The first support level is at 91.68, aligned with the lower Bollinger Band. If the price breaks below this, it could fall further to 90.70, the low recorded on April 30. A more significant drop could test the psychological 90.00 level.
Resistance: On the upside, 93.90, the 100-day EMA, acts as immediate resistance. A sustained move above this could push the pair toward 94.78, the upper Bollinger Band boundary. Further gains might reach 95.65, the high from May 13.
Summary
The AUD/JPY pair remains under bearish pressure due to weak Australian economic data and technical resistance near 93.90. Traders should watch for a break below 91.68 for further downside or a move above 93.90 for a possible short-term recovery.
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