18 Feb 2015
AUD/JPY hits fresh highs after Japan Post & Aus Toll Holdings M&A sealed
FXStreet (Mumbai) - AUD/JPY reversed previous losses and turned in green during Asian trading, after reports hit the wires that Japan Post Holdings confirms the takeover of Australia’s Toll Holdings Ltd, while looming BOJ still remains in focus.
Stronger Australian equities also support AUD/JPY
Currently, the AUD/JPY trades steady at 93.24 levels, retreating from fresh session highs posted at 93.31 levels immediately after the news hit the wires. AUD/JPY edged higher as the Australian dollar got boosted by the reports that Japan Post Holdings Co. agreed to buy Toll Holdings Ltd. for AUD6.49 billion (USD5.07 billion). The deal is likely to provide the state-owned company an Asia-wide transport logistics network ahead of an initial public offering later this year.
Meanwhile, the news sent the Toll Holdings stock rallying and pushed the ASX 200 to fresh daily highs at 5889.10, up 0.53% on the day, which supported the upside in AUD/JPY. Moreover, expectations of the foreign investment in the Oz economy also pushed the AUD higher against the Japanese currency. The pair seems to be well supported above 93 levels as traders now turn focus on the upcoming BOJ Statement for fresh cues on the pair.
AUD/JPY Levels to consider
To the upside, the next resistance is located at 93.41 levels and above which it could extend gains to at 93.98 levels. To the downside immediate support might be located at 93 levels below that at 92.52 (10-DMA) levels.
Stronger Australian equities also support AUD/JPY
Currently, the AUD/JPY trades steady at 93.24 levels, retreating from fresh session highs posted at 93.31 levels immediately after the news hit the wires. AUD/JPY edged higher as the Australian dollar got boosted by the reports that Japan Post Holdings Co. agreed to buy Toll Holdings Ltd. for AUD6.49 billion (USD5.07 billion). The deal is likely to provide the state-owned company an Asia-wide transport logistics network ahead of an initial public offering later this year.
Meanwhile, the news sent the Toll Holdings stock rallying and pushed the ASX 200 to fresh daily highs at 5889.10, up 0.53% on the day, which supported the upside in AUD/JPY. Moreover, expectations of the foreign investment in the Oz economy also pushed the AUD higher against the Japanese currency. The pair seems to be well supported above 93 levels as traders now turn focus on the upcoming BOJ Statement for fresh cues on the pair.
AUD/JPY Levels to consider
To the upside, the next resistance is located at 93.41 levels and above which it could extend gains to at 93.98 levels. To the downside immediate support might be located at 93 levels below that at 92.52 (10-DMA) levels.