AUD/JPY pops and drops on better retail sales, RBA in focus

The AUD bulls received fresh impetus from upbeat Aus retail sales data, which sent the AUD/JPY cross higher to test 87 handle in a knee-jerk reaction, before running into fresh offers just below the last, to now revert to 86.80 levels.

AUD/JPY: All about RBA today

Despite stronger-than expected Australian retail sales data, the cross in AUD/JPY failed to sustain at higher levels, as markets remain wary over the language in RBA’s policy statement, especially after the global central banks turned hawkish last week.

Hawkish rhetoric is evident from RBA today? - Nomura

Moreover, with the demand for yen prevailing across the board, the recovery in AUD/JPY remains restricted, keeping the cross capped below 87 handle. All eyes now remain on the RBA monetary policy decision for the next direction on the prices.

Technical Levels

Higher side: 87 (round figure), 87.50 (psychological levels), 87.25/29 (Fib R2/ classic R1)

Lower side: 86.53 (10 & 5-DMA), 86 (round number), 85.69 (10-DMA)