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)
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