AUD/JPY fails near 6-week tops on RBA minutes

The bullish momentum behind the AUD/JPY cross lost steam just shy of 6-week highs of 84.59, after the RBA May meeting minutes showed that the central bank is concerned over the property markets.

AUD/JPY: 84 handle back on sight?

The cross came under fresh selling pressure and now trims gains, receding back below 84.50 barrier, as markets digest the cautious tone seen in the RBA minutes. RBA minutes revealed that both the labour, housing markets warrant "careful monitoring."

Despite markets already pricing-in RBA’s concerns over the housing markets, the cross reacted negatively to the RBA minutes release. Additionally, fresh selling seen in USD/JPY last hour, also collaborated to the retreat in the spot.

However, the retreat appears to remain restricted amid optimistic remarks from the RBA on the inflation outlook and persistent risk-on trades, in the wake of higher stocks and oil prices.

Next of note for the cross remains the US dataflow lined up for release later in the NA session. In the meantime, risk trends will continue to drive the prices.

Technical Levels

Higher side: 84.59 (six-week tops), 85 (round number), 85.53 (Mar 23 high)

Lower side: 83.73/71 (200 & 20-DMA), 83.38 (May 10 low), 83 (key support)