AUDJPY Drifts Lower Ahead of RBA Minutes Release

The AUDJPY was 0.30% lower on Monday as traders await the release of the Reserve Bank of Australia’s Meeting minutes tomorrow. Bank Governor Philip Lowe has been clear that the current 0.25% level in interest rates would be a floor he doesn’t to go below but there is still potential for further stimulus is the Aussie economy struggles. Traders will be looking for words to that effect in the minutes tomorrow.

Another key release this on Thursday this week will be the latest unemployment figures from Australia. Analysts expect the number to come in at -50k after strong gains last month and the unemployment rate is expected to be 7.7%. This figure was closely-watched by Governor Lowe earlier in the year and, alongside the RBA minutes, could give traders a good update on the strength of the rebound down under.

As expected, Japan’s ruling LDP chose close Shinzo Abe’s confidante Yoshihide Suga as Japan’s next Prime Minister, in a show of support that should ensure similar policies to outgoing PM. 

Suga will formally become Prime Minister on Wednesday and would see out Abe’s final year before a September 2021 election, however, some have suggested Suga will call a snap election to gain support and that could possibly bring uncertainty to the Yen. 

AUDJPY Technical Outlook

The AUDJPY weekly chart sees the price held the uptrend support last week and the horizontal support level around 76.80 will be key for the pair’s fortunes. Lower prices could see the market test 72.50.  The 78.00 level is the resistance level for further gains in AUDJPY. New Forex traders can find details about the Investing Cube Forex Course here.

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AUDJPY Weekly Chart

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