- Geopolitics, trade developments gain major market attention.
- Australia/China housing price data and RBA minutes are in the spotlight.
With the US-China trade war and geopolitical tension between the US and Iran grabbing the spotlight, AUD/JPY remains on a back foot to 74.40 ahead of housing market data from Australia and China up for release during early Tuesday.
Latest news from Bloomberg signals that China’s holdings of the US Treasuries slipped to $1.113 trillion in April versus March month figures of $1.121 trillion. The trade war between the two countries has been spotted in the report as a reason for the decline in China’s treasury holdings.
Elsewhere, Reuters came out with a news report citing unnamed US official saying that the nation is preparing for sending additional troops to the Middle Ease amid threats from Iran.
The Japanese Yen (JPY) is considered risk safe and often sought in terms of market uncertainties.
Looking forward, house price Index data from China and Australia, coupled with minutes of the latest RBA meeting, could direct near-term pair moves.
While May month housing price figure from China grew 10.7%, its counterpart from Australia shrank -2.4% in Q4 2018 and is likely to improve to -1.6% during the first quarter of the current year. Further, investors would seek additional clues of why the latest rate cut was announced the Reserve Bank of Australia (RBA) in the minute statement.
Technical Analysis
Latest low near 74.30 holds the gate for the quote’s extended south-run to 73.00 and then the year 2016 low around 72.40 whereas an upside break of 74.48 can recall 74.80 and 75.00 on the chart
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