AUD/JPY to test 90.00 as risk-on improves, RBA minutes in the limelight
- AUD/JPY is heading towards 90.00 on positive market sentiment.
- Aussie investors are keeping eye on RBA minutes and employment data this week.
- The Japanese yen will be impacted by the release of GDP numbers.
The AUD/JPY pair is advancing towards the psychological resistance of 90.00 amid a strong rebound from last week’s low of 87.48. The risk barometer experienced a firmer responsive buying action around the previous week’s low, which turned into an initiative buying after the asset overstepped 89.00. A solid recovery move came after the risk-off impulse faded away and investors approached risk-sensitive assets to park their funds amid lower volatility.
The antipodean is going to remain in limelight this week amid the availability of multiple catalysts that will keep investors sneaking over it. On Tuesday, the release of the Reserve Bank of Australia (RBA) minutes will depict the rationale behind dictating the 35 basis points (bps) interest rate decision by RBA’s Governor Philip Lowe in May’s first week. To tame the soaring inflation, the RBA elevated its interest rates for the first time after the Covid-19 pandemic.
Followed by the RBA meeting minutes, the Australian Bureau of Statistics will report Employment Change on Thursday, which is seen at 25k, higher than the prior print of 17.9k. Also, the Unemployment Rate may land at 3.9%, against the prior print of 4%.
On the Japanese front, investors are solely focusing on the Gross Domestic Product (GDP) numbers, which are due on Wednesday. A preliminary estimate for the annualized figure is -1.8% while the quarterly numbers are expected at -0.4%.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
