AUD/JPY back in the red pos

AUD/JPY back in the red post-SoMP, eyes on 83.00

The Australian dollar stalled its minor-recovery mode and fell back in the red against its Japanese counterpart, following the release of the RBA’s quarterly Statement of Monetary Policy (SoMP).

AUD/JPY remains below 200-DMA at 83.40

The RBA’s SoMP showed no changes to the 2017 inflation and GDP forecasts, while warned over rising house prices risks, which weighed down on the sentiment around the Aussie.

Moreover, renewed weakness in the Dalian iron-ore prices, after the metal opened lower again today, also fueled the downside in the cross.

However, the losses appear to remain cushioned amid a buoyant tone seen around the USD/JPY pair, as the bulls cheer the Obamacare approval by the House of Representatives by a small margin.

The spot remains on the back foot, despite upbeat Aus construction output data, as nervousness sets in ahead of the key US payrolls data due later in the NA session.

Technical Levels

Higher side: 83.76/78 (classic R1/ 5-DMA), 84.47/50 (Apr 5 high/ psychological levels), 85 (round number)

Lower side: 82.98 (20-DMA), 82.62 (classic S2/ Fib S3), 81.93 (Apr 21 low)