AUD/JPY lower as RBA does not see strong case for near-term change in cash rate

  • AUD/JPY is lower despite the RBA's GDP and CPI forecasts being a little higher.
  • AUD/USD dropped from 0.7265 to 0.7246 on the RBAs Statement on Monetary Policy and dragged the cross to 82.71.

AUD/JPY has dropped on the RBAs Statement on Monetary Policy and one of the main catalysts for a lower Aussie has been due to the unemployment rate forecast being a little lower.

The following are the key points today's RBA's Statement on Monetary Policy:

  • Board does not see strong case for near-term change in cash rate
  • The GDP and CPI forecasts have nudged a little higher.
  • The unemployment rate forecast a little lower.
  • No case for a near term policy move on the cash rate.

Meanwhile, USD/JPY targets above 114.74 with a very wide scope towards 118.66, the December 2016 high. Analysts at Commerzbank argued that the market is underpinned by the 55 day ma (112.40) and cloud support (112.93/15). 

AUD/JPY levels

RSI has been turning negative after rising to OB territory. AUD/JPY has been capped by R1 at 83.06 before the double top at 82.25. The pair is now resting at the pivot at 82.79 but a breakdown opens 81.92 on the wide. 80.64 is a key 61.8% Fibo and 80..25 is a 50% Fibo level. 

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