AUD/JPY holds firm with a watchful eye on stocks

It's a quiet day mid-week for the forex space with little action and a whole lot of consolidation. 

AUD/JPY, which tracks risk appetite and trades high beta to global equities, is stuck in a tight range and flat on the day.

The cross has traded between a low of 84.75 and a high of 84.91, consolidating within a sideways chop.

Overnight, it was relatively uneventful though USD/JPY that fell about 30 pips to 108.90 and AUD/USD that reached a high of 0.7813 in early London trade, then traded mostly in the high 0.77s.

With an eye on US stocks, these ended down on Tuesday, slumping on a sharp decline in telecom stocks and weak housing starts data.

The benchmark S&P 500 index added 0.14% before then topping in the first minute of the regular session. The blue-chip Dow added 0.24% before hitting its high about 15 minutes into the session. The tech-laden index rallied around 0.8% before turning south in mid-morning trade.

In the end, all three major indexes finished in the red with weighed on the antipodeans and Wednesday's action will be closely watched by traders for any pick up in downside momentum.

Meanwhile, yesterday’s Reserve Bank of Australia board minutes did not provide information that had surprised markets and rate hike conditions are unlikely to be reached until at least 2024 at their earliest. 

In the commodities, complex, after strong start metals were mixed with copper last at $10,416 up 0.41% but aluminium down 1.32% at $2,466. Zinc bucked the trend though up 1.36% at $3,055 and at fresh 3-year highs. 

Looking ahead for the day, the minutes from the Fed 27-28 April meeting are due.

Traders will be looking out for more light shed on the Fed’s views prior to big surprises on both Nonfarm Payrolls and inflation.