• AUDJPY extends the previous day’s pullback from one-week high on softer China inflation data.
• China CPI dropped below forecasts, prior readings but PPI improved in October.
• Weekly support line teases the bears before directing them to 93.00 support.
• Buyers have a bumpy road on the north to track.

AUDJPY takes offers to refresh intraday low near 94.50 after witnessing China’s downbeat inflation data on early Wednesday. In doing so, the cross-currency pair drops for the second consecutive day while stretching the previous day’s pullback from a one-week high.

That said, China’s headline Consumer Price Index (CPI) dropped to 2.1% versus 2.4% market forecasts and 2.8% prior. However, the Producer Price Index (PPI) improved to -1.3% compared to -1.5% expected and 0.9% previous readings.

It should be noted that the downbeat China CPI and the quote’s latest weakness allow bears to poke the 200-HMA. Also acting as a downside filter is the upward-sloping support line from Monday, near 94.40.

It’s worth noting, however, that a clear downside break of 94.40 will make the AUDJPY vulnerable to testing the 93.00 horizontal support.

Alternatively, recovery moves need to cross a descending resistance line from November 01, around 95.20 by the press time, to recall the buyers.

Even so, the monthly high and October’s peak, respectively around 95.55 and 95.75 in that order, could test the upside momentum.

AUD/JPY: Hourly chart

Trend: Further downside expected