The offered tone around the Aussie dollar has strengthened, pushing the AUD/JPY cross to a fresh session low of 79.95.
The Australian currency has come under pressure in the last few minutes, possibly due to the dovish Reserve Bank of Australia's (RBA) April meeting minutes.
The central bank's monetary policy board is open to cutting rates if inflation remains weak and the labor market loses strength, the minutes showed. Further, with subdued price pressures, the board saw low odds of a near-term rate rise. Clearly, the board looks to be preparing markets for a potential rate cut in the second half of this year.
While the RBA's dovish stance is AUD-negative, technical studies and the daily chart in particular, is calling a bullish move in the AUD/JPY cross.
Daily chart
-636909773658130568.png)
- The bullish view put forward by the channel breakout on Friday will remain valid as long as the pair is held above 79.70. Also, with the 5- and 10-day MAs trending north, the path of least resistance appears to be on the higher side.
- A strong bounce from the 5-day MA, currently at 79.76 or 79.70 (upper edge of the channel), if followed by a move above 80.49 (Friday's high), would solidify the channel breakout, opening the doors to levels above 81.00.
- A close below 79.70 would neutralize the bullish setup.
Trend: Cautiously bullish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0600 as focus shifts to Powell speech
EUR/USD fluctuates in a narrow range above 1.0600 on Tuesday as the better-than-expected Economic Sentiment data from Germany helps the Euro hold its ground. Fed Chairman Powell will speak on the policy outlook later in the day.
GBP/USD stays near 1.2450 after UK employment data
GBP/USD gains traction and trades near 1.2450 after falling toward 1.2400 earlier in the day. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, limiting Pound Sterling's upside.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Canada CPI Preview: Inflation expected to accelerate in March, snapping two-month downtrend
The Canadian Consumer Price Index is seen gathering some upside traction in March. The BoC deems risks to the inflation outlook to be balanced. The Canadian Dollar navigates five-month lows against the US Dollar.