|

AUD/JPY flat lines around 93.70, moves little after RBA decides to leave rates unchanged

  • AUD/JPY struggles to gain any meaningful traction and oscillates in a range on Tuesday. 
  • The RBA left the Official Cash Rate unchanged, though it does little to provide any impetus.
  • BoJ rate hike bets and rising trade tensions underpin the JPY, keeping a lid on spot prices.

The AUD/JPY cross struggles to capitalize on the previous day's modest bounce from the 93.00 neighborhood, or over a two-week low, and oscillates in a range during the Asian session on Tuesday. Spot prices hold steady around the 93.70 region and move little after the Reserve Bank of Australia (RBA) announced its policy decision.

As was widely expected, the Australian central bank announced that it left the Official Cash Rate (OCR) unchanged at 4.1% at the conclusion of the April monetary policy meeting. In the accompanying policy statement, the RBA sounded cautious about the outlook and reiterated that returning inflation sustainably to target remains the highest priority. Furthermore, the central bank said that the continued decline in underlying inflation is welcome and the monetary policy remains restrictive, leaving the door open for a possible rate cut in May. 

This, along with persistent worries about US President Donald Trump's aggressive trade policies and their impact on the global economy, continues to weigh on the Australian Dollar (AUD). Apart from this, the emergence of some dip-buying around the Japanese Yen (JPY), caps the AUD/JPY cross. The Bank of Japan's (BoJ) Tankan survey released today showed that Japanese enterprises have raised their inflation forecasts for one year, three years, and five years ahead. This backs the case for more BoJ rate hikes and underpins the JPY. 

Traders, however, might refrain from placing aggressive directional bets and opt to wait for Trump's so-called reciprocal tariffs announcement later today, at 19:00 GMT. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the AUD/JPY cross is to the downside and any intraday move-up might still be seen as a selling opportunity.

Economic Indicator

RBA Interest Rate Decision

The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.

Read more.

Last release: Tue Apr 01, 2025 03:30

Frequency: Irregular

Actual: 4.1%

Consensus: 4.1%

Previous: 4.1%

Source: Reserve Bank of Australia


BRANDED CONTENT

Finding the right broker for your trading strategy is essential, especially when specific features make all the difference. Explore our selection of top brokers, each offering unique advantages to match your needs.

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull. 

Gold retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance. 

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).