A renewed selling wave gripped the Australian dollar following the release of the Australian retail sales data for April, knocking-off AUD/JPY sharply below the mid-point of 83 handle.
AUD/JPY eyes Aus annual budget release
The spot stalled its overnight recovery mode and came under aggressive selling pressure after a negative surprise seen in the Australian retail sales data weighed heavily on the Aussie.
Moreover, cautious remarks on the Australian house prices, as reflected by the RBA’s Statement of Monetary policy, continues to weigh down on the Aussie. The cross now prints fresh session lows of 83.47, down -0.22%, having fallen sharply from daily tops near 83.85 region.
Another disappointing retail sales print pours cold water on a RBA rate hike expectations going forward, just as the RBA remains concerned about the rising house prices.
The cross remains offered, despite a minor-bounce seen in copper prices and mild yen weakness across the board. Focus now shifts towards the next risk event for today, the Australian budget release due on the cards during the European session.
Higher side: 83.68 (-DMA), 84.47/50 (Apr 5 high/ psychological levels), 85 (round number)
Lower side: 83.18 (20-DMA), 82.81 (classic S2/ Fib S3), 81.93 (Apr 21 low)