AUD/JPY retreats towards 91.00 on downbeat RBA Minutes, sluggish yields

AUD/JPY renews intraday low after RBA Minutes, sluggish yields also weigh on prices.
RBA Minutes disappoints hawks by citing little room for upside risks to inflation.
US 10-year Treasury bond yields snap two-day uptrend amid US default woes, anxiety ahead of the key US data.
BoJ’s defense of early money policy, mixed sentiment prod AUD/JPY bulls.

Anil Panchal FXStreet

AUD/JPY takes offers to refresh the intraday low near 91.00, reversing the week-start run-up, as the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes disappoint the Australia Dollar (AUD) buyers on early Tuesday. Apart from the RBA Minutes, the sluggish US Treasury bond yields also exert downside pressure on the cross-currency pair.

RBA’s May month monetary policy meeting minutes fail to justify the latest hawkish surprise as it cited that easing inflation pressure. The Minutes also showed the policymakers’ concerns about the sluggish productivity growth weighing on the AUD/JPY prices.

Also read: RBA Minutes: Board considered pausing or hiking 25 basis points in may policy decision

Additionally, the US 10-year Treasury bond yields drop back to 3.49% after a two-day uptrend as market sentiment weakens ahead of the key US debt ceiling talks. Furthermore, anxiety before the key US Retail Sales and China data dump also prods the week-start optimism and lures the risk barometer AUD/JPY pair.

That said, the latest comments from United States House Speaker Kevin McCarthy saying, “I don’t think we’re in a good place,” seem to weigh on the sentiment amid fears of deadlock on the US debt ceiling extension as Republicans may stick to their demand.

Moving on, China’s data dump for April, comprising Industrial Production and Retail Sales for April may entertain the AUD/JPY pair traders. More importantly, headlines surrounding the US debt ceiling talks and the Bank of Japan (BoJ) should be watched carefully for clear directions.

Technical analysis

Despite the latest retreat, AUD/JPY sellers need to conquer the previous resistance line from early May, now immediate support near 91.00, to retake control.

Additional important levels

Overview
Today last price	91.16
Today Daily Change	-0.04
Today Daily Change %	-0.04%
Today daily open	91.2

Trends
Daily SMA20	90.25
Daily SMA50	89.38
Daily SMA100	90.26
Daily SMA200	92.04

Levels
Previous Daily High	91.32
Previous Daily Low	90.15
Previous Weekly High	91.88
Previous Weekly Low	89.8
Previous Monthly High	90.78
Previous Monthly Low	87.59
Daily Fibonacci 38.2%	90.87
Daily Fibonacci 61.8%	90.6
Daily Pivot Point S1	90.46
Daily Pivot Point S2	89.72
Daily Pivot Point S3	89.29
Daily Pivot Point R1	91.63
Daily Pivot Point R2	92.06
Daily Pivot Point R3	92.8

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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