AUD/JPY: Muted reaction to RBA minutes

AUD/JPY wavers as RBA minutes say rates could remain low for years.
Minutes also said the policymakers have no appetite to use negative rates.
Aussie pairs dropped sharply in the first quarter on RBA's dovish move and coronavirus fears.

Omkar Godbole FXStreet Contributor

The AUD/JPY pair is barely moving in response to the minutes of the Reserve Bank of Australia's (RBA) emergency meeting held on March 18, which said the interest rate is likely to stay at very low levels for years.

The minutes added that there will be significant job losses in the months ahead and the monetary and fiscal policies will play an important role in battling the coronavirus-led slowdown.

Even so, the AUD/JPY pair is showing resilience and so far traded in the range of 65.90-65.75. The resilience could be attributed to the statement in the minutes that the policymakers have a low appetite for using negative rates to contain the economic fallout from the virus outbreak.

The RBA reduced the cash rate or the official interest rate to zero on March 18 and launched a yield curve control program.

The dovish move and the prospects of a coronavirus-led recession in the Australian and global economy led to a sharp fall in the Aussie pairs in the first quarter. The AUD/JPY pair declined by 76.24 to 59.87 in the first three months of the year.

Technical levels

AUD/JPY

Overview
Today last price	65.84
Today Daily Change	-0.13
Today Daily Change %	-0.20
Today daily open	65.97

Trends
Daily SMA20	66.5
Daily SMA50	70.6
Daily SMA100	72.78
Daily SMA200	73.26

Levels
Previous Daily High	67.27
Previous Daily Low	65.58
Previous Weekly High	67.7
Previous Weekly Low	62.93
Previous Monthly High	71.52
Previous Monthly Low	59.9
Daily Fibonacci 38.2%	66.23
Daily Fibonacci 61.8%	66.63
Daily Pivot Point S1	65.28
Daily Pivot Point S2	64.58
Daily Pivot Point S3	63.59
Daily Pivot Point R1	66.97
Daily Pivot Point R2	67.97
Daily Pivot Point R3	68.66

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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