- Australian retail sales gave another reason supporting the RBA’s rate cut.
- RBA meeting and governor’s speech will be in the spotlight.
With the Australian data continues to favor the RBA’s rate cut, AUD/JPY is trading near 75.15 during early Tuesday.
April monthly seasonally adjusted retail sales lagged behind +0.2% market forecast to shrink to -0.1% versus +0.3% prior whereas first quarter current account balance also missed the -2.5 billion market consensus to flash -2.9 billion against -7.2 billion earlier.
Other than sluggish Australian data, market’s favor for risk-safety amid the US-led trade tussles can also be considered as an important catalyst of the recent downturn.
The global risk barometer 10-year US treasury yield yesterday slumped to the fresh 20 month low while 2-year yields are at an 18-month low during the press time.
Investors will now focus on the Reserve Bank of Australia’s (RBA) monetary policy meeting and the Governor’s speech at the RBA Board dinner for fresh directives.
While RBA is much anticipated to announce a 25 basis points (bps) cut to its benchmark cash rate, details of the central bank’s future anticipation will be closely watched for now.
Technical Analysis
With its break of 21 and 50 hours moving averages (HMAs) on the hourly chart, the quote is likely declining further towards 75.00 ahead of aiming to revisit the July 2016 low near 74.50.
Alternatively, an upside clearance of 75.30 may trigger short-term pullback of prices towards 75.50 and then to 75.70 while 76.20 and 77.40 can entertain buyers then after.
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