AUD/JPY clocks fresh 4-day high

The bid tone around AUD strengthened, pushing the AUD/JPY cross to a fresh 4-day high of 84.78 after the China manufacturing PMI bettered estimates.

China Caixin manufacturing PMI for December came-in at 51.9, which is higher than the expected dip to 50.7 from 50.9. The details revealed the operating conditions improved at a fastest pace in nearly four years.

Consequently, the Aussie dollar is ruling the roost against most majors. The Yen side of the story remains weak as experts believe the treasury yields could continue to rise in 2017.

AUD/JPY Technical Levels

A break above 84.86 (Dec 28 high) could yield a break above 85.00 (zero figure), in which case the major hurdle at 85.75 (Dec 21 high) could be put to test. On the other hand, a breakdown of support at 84.37 (10-DMA) would expose support at 84.00 (zero figure) and 83.74 (Dec 29 low).