AUD/JPY tests hourly 50-MA support ahead of RBA minutes

AUD/JPY deflated to hourly 50-MA support of 76.71 ahead if the RBA minutes release which is expected to reiterate central bank’s wait-and-see approach over the near-term.

Hovers around 76.80

The cross was last seen trading around 76.80 levels. The bid tone around the Aussie strengthened yesterday after reports hit the wires that RBA and government agree on the necessity to keep inflation low and stable. This means reduced probability of aggressive rate cuts in the future.

Meanwhile, the Yen side of the story remains lackluster as markets await the Bank of Japan policy rate decision due tomorrow. The immediate focus is on the RBA minutes release.

AUD/JPY Technical Levels

Acceptance above 10-DMA level of 77.00 could yield 77.42 (Sep 14 high), above which a major hurdle at 77.79 (50-DMA) could be put to test. On the lower side, breach of 76.65 (5-DMA) would open doors for 76.31 (Sep 16 low) and 76.00 (zero figure).