- AUD/JPY pays a little heed to the RBA minutes.
- Trade sentiment remains pressured, additional aid packages from the US, Japan awaited.
- Coronavirus updates come in slow amid a major focus on oil.
- Focus on RBA’s Lowe, virus news, stimulus updates.
AUD/JPY drops to 68.12 just after the RBA released April month monetary policy meeting minutes during Tuesday’s Asian session. Even so, the pair stays above 68.00 amid mixed catalysts.
RBA minutes confirm the Aussie central bank’s intention to taper the bond purchases in the future. However, speech from the RBA Governor Philip Lowe will be watched for details.
Read: RBA Minutes: Will continue to do what was necessary to achieve the three-year yield target
The market’s trade sentiment remains sluggish as traders struggle to overcome the previous day’s oil slump. The energy future for May contract slumped to near -$38.00 by the end of Monday’s settle period as markets fear a lack of demand amid rising inventories.
Hence, the US 10-year Treasury yields remain on the back foot near 0.62% with stocks in Japan, Australia and New Zealand marking losses below 1.0% by the press time.
Having marked an initial reaction to the minutes, the pair traders will wait for the RBA Governor Philip Lowe’s speech, at 05:00 GMT, for fresh impulse. The RBA’s Lowe will be speaking on “Economic and Financial Update” and will be followed for confirmation of the latest moves.
Other than that, virus updates and news concerning expected stimulus from the US and Japan will also be watched closely for fresh impetus.
Technical analysis
The 50-day SMA, currently near 68.75, keeps restricting the pair’s near-term upside, which in turn compresses the moves towards Thursday’s low near 67.60 and then to 21-day SMA level of 67.20.
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