AUD/JPY: Japanese Yen draws bids as US stimulus bill encounters hurdles

• AUD/JPY drops nearly 90 pips as the US struggles to pass the Coronavirus fiscal stimulus bill. 
• The number of new cases rise in Japan and the UK. 
• Singapore's GDP contracted by 10 percent in the first quarter.

The bid tone around the anti-risk Japanese Yen strengthened in Asia, pushing the AUD/JPY lower from 66.26 to 65.34, as the US Senate leaders encountered various hurdles and struggled to pass the fiscal stimulus bill. 

The Senate and the Trump administration reached an agreement early Wednesday on a massive spending package aimed at stemming the economic fallout from the coronavirus outbreak. Senate leaders, however, struggled to fend off a number of last-minute snags, as reported by The Washington Post. That weighed over the risk sentiment - the Dow, which was up more than 1,000 points during the overnight trade, trimmed gains and closed with a 495 point gain. 

The risk sentiment was further hurt by a big jump in the coronavirus cases in Japan and the UK. Additionally, Singapore reported a 10 percent contraction in the growth rate in the first quarter. 

Looking forward, AUD/JPY could suffer deeper losses if the Senate fails to pass the fiscal stimulus bill, which has already been delayed by four days. The package is expected to be worth $2 trillion. 

Technical levels