AUD/JPY: Upside remains capped below 85 handle on RBA minutes

Dhwani Mehta FXStreet

The AUD/JPY cross failed to sustain at higher levels and turned lower towards daily lows, following the RBA’s minutes release.

AUD/JPY: RBA’s warnings on labour and property markets ignored?

Despite RBA’s stance on careful monitoring over the labour and property markets in its minutes, the cross in AUD/JPY jumped higher to test 85 handle, although met the sellers continue to lurk near the last, sending the rate back towards the familiar region near 84.80 levels.

RBA minutes: Developments in the labour and housing markets warrant careful monitoring

The cautious tone delivered by the RBA minutes keeps the AUD/USD pair on the offers below 0.76 handle, keeping the gains in the AUD/JPY cross limited. More so, a drop in the Australian HPI index also weighs down on the spot.

However, the retreat in the cross remains restricted amid a better sentiment seen towards USD/JPY, which trades near daily tops of 111.78. A risk-on rally in the Japanese stocks adds to the ongoing bullish momentum seen behind USD/JPY.

Focus now shifts towards the US macro news and Fedspeaks due later today for further momentum on the prices.

Technical Levels

Higher side: 85 (round figure), 85.50 (psychological levels), 85.77 (Mar 31 high)

Lower side: 84 (key support), 83.78 (10-DMA), 83.35/14 (50 & 20-DMA)

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.