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AUD/JPY opening up fresh losses ahead of RBA

FXstreet.com (New York) - The AUD/JPY technical cross could not regain the 88.00 level Tuesday morning, driving lower ahead of the RBA later today.

The Asian session will be dominated by events in Australia, beginning with the release of Housing data and Trade statistics at 1:30 GMT. This will open up into the RBA monetary policy statement and Interest Rate decision at 4:30 GMT. The consensus projection is a cut in rates to 2.5% from 2.75%.

AUD/JPY technical levels

The AUD/JPY is now trading at just 87.72 at the time of writing, opening up losses of -0.10% off its opening thus far. Following yesterdays rather muted performance, the AUD/JPY will look to test supportive means at 87.73 (50-day SMA), ahead of 87.49 (August 5 low), and 87.36 (August 1 low).

Flash: Dairy scandal may hinder NZD recovery potential - Rabobank

The potential that New Zealand's largest exporter - Fonterra - may lose its largest trading partner - China - should, according to Jane Foley, Senior Currency Strategist at Rabobank, "at least hinder recovery potential for the NZD until further information about the duration of the export bans on NZ diary exports become clear." Foley thinks that at worst, "there is the possibility of a more lasting impact on the diary industry which would force to revise lower our medium-term NZD forecasts."
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