AUD/JPY slumps to lows near 82.50 on RBA minutes

The AUD/JPY cross faced rejection just shy of 83 handle, and now accelerates the decline towards the mid-point of 82 handle, following the release of the RBA April meeting minutes, which showed a cautious tone on economic prospects, with regard to the housing sector and labor market.

The latest leg down in the cross can be largely attributed to the renewed sell-off seen in the AUD/USD pair, in response to a broader sell-off in commodities’ prices, with the cautious RBA minutes adding to the pain in the Aussie.

Meanwhile on the JPY-side of the story, the USD/JPY pair trims gains and eases towards 109 handle, as risk sentiment appears to have deteriorated somewhat amid a drop in the Chinese home prices and retreating Japanese stocks.

Later today, focus remains on a flurry of US macro data, as full markets return and bring in the much-needed volatility back into markets.

Technical Levels

Higher side: 82.95/83 (daily top/ 200-DMA/ round number), 83.33 (Classic S2/ Fib R3), 83.58 (20-DMA)

Lower side: 81.87/82 (multi-month lows), 81.59 (Classic S2/ Fib S3), 81.00 (key support)