- RBA minutes emphasize incoming data, with labor statistics being the key, to determine next policy moves.
- AUD/JPY continues to cheer previous upbeat sentiment amid lack of risk catalysts.
Despite the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes highlighting the central bank’s readiness to act “if needed”, the AUD/JPY remains firm around 76.00 during early Tuesday.
In its monetary policy meeting minutes for the July 02 decision, the RBA fails to offer any direct signs for future actions and rather highlighted incoming data flow after announcing 2 such rate hikes during the year.
The pair recently took advantage of China’s data-dump and Japan’s recent holiday to rally to a 2-week high. It should also be noted that investors showed little attention to the US-China trade stalemate as it has been flashing mixed signs off-late.
The global risk gauge, 10-year treasury yield of the US Government Bond, remains on a back foot around 2.085% by the press time.
Thursday’s Australian jobs report become key for the Australian Dollar (AUD) traders as the RBA continues to emphasize incoming data flow while the Governor highlights unemployment rate as the lead indicator to predict next policy move.
Additionally, risk events like trade headlines and political tussles may join today’s speech by the global leaders at the French G7 Presidency 2019 to determine near-term market sentiment.
Technical Analysis
A 5-week old rising wedge limits the pair moves between the 76.45 and 75.45 with the resistance-line getting an additional back up from 50% Fibonacci retracement of April-June downpour. While 77.07 and February month low around 77.45 can lure the buyers past-76.45, 74.80 and June month low near 73.92 may appear on the downside break to 75.45.
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