AUD/JPY remains sidelined above 72.00 after RBA minutes

AUD/JPY has seen little action following the RBA minutes.
The minutes confirmed the RBA's easing bias and that the central bank is in a wait-and-watch mode.
The minutes offered no hawkish or dovish surprise, leaving AUD/JPY at the mercy of broader market sentiment.

Omkar Godbole FXStreet Contributor

AUD/JPY is barely moving in response to the minutes from the Reserve Bank of Australia's (RBA) August meeting released at 01:30 GMT.

The currency pair is currently trading at 72.13, up five pips from 72.08 seen before the release of the RBA minutes.

Rates to remain low for an extended period

RBA board would consider a further policy easing, if needed, and would assess developments in domestic, global economies before considering easing, the minutes showed.

The policymakers also expect interest rates to remain low for an extended period and believe the recent slide in the AUD will help exports and tourism.

key points

Risks to economy tilted to the downside in the near term, more balanced further out.
The board reviewed the experience of developed nations with unconventional monetary policy.
Few signs of inflationary pressures emerging, downside risks to some CPI components.
The escalation in China-US trade dispute a downside risk to global growth.
Further monetary easing "widely expected" around the world.

All-in-all, the minutes confirmed the RBA's easing bias and the fact that it is now on a wait-and-watch mode. The central bank left rates unchanged at 1.00% on Aug. 6.

With the minutes offering no hawkish or dovish surprises, the AUD pairs are at the mercy of the broader market sentiment. It is worth noting that the US stocks put on a good show on Monday with the S&P 500 index rising 1.21%.

Hence, the anti-risk JPY may come under pressure during the day ahead, helping AUD/JPY eke out gains.

Pivot points

1. R3 72.64
2. R2 72.47
3. R1 72.3
PP 72.13
1. S1 71.96
2. S2 71.79
3. S3 71.62

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD trims some losses, back to 1.1770

EUR/USD remains on the back foot on Thursday, managing to regain some composure and reclaim the 1.1770 region after bottoming out near 1.1740 earlier in the day. The pair’s daily retracement comes as the US Dollar extends its recovery, buoyed by another round of solid US data that has reinforced the Greenback’s underlying strength and kept buyers firmly in control.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.