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.
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.
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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