AUD/JPY remains on the defensive above 104.00, moves little after RBA decision

AUD/JPY fails to capitalize on the overnight goodish rebound from a multi-day low.
BoJ Governor Ueda's hawkish remarks underpin the JPY and cap gains for the cross.
The RBA’s decision to leave interest rates unchanged fails to provide any impetus.

Haresh Menghani FXStreet

The AUD/JPY cross attracts some sellers following an Asian session uptick on Tuesday and stalls the overnight bounce from the 103.60-103.55 area or a multi-day low. Spot prices remain on the defensive after the Reserve Bank of Australia (RBA) announced its policy decision and currently trade just above the 104.00 round-figure mark.

As was widely anticipated, the RBA decided to keep the Official Cash Rate (OCR) unchanged at a 12-year high level of 4.35% for the fifth successive meeting in June and retained its hawkish stance. The central bank, meanwhile, is expected to leave the door open for a rate hike this year in the wake of still sticky inflation, which, in turn, could act as a tailwind for the Australian Dollar (AUD) and lend support to the AUD/JPY cross.

Data released from China on Monday underlined a bumpy recovery in the world's second-largest economy. This overshadows the RBA's higher for longer interest rate narrative and undermines antipodean currencies, including the Aussie. Meanwhile, the Japanese Yen (JPY) benefits from the Bank of Japan (BoJ) Governor Kazuo Ueda's remarks, saying that the central bank could raise rates in July depending on economic data.

Apart from this, speculations that Japanese authorities might intervene to prop up the domestic currency further contribute to the AUD/JPY pair's downtick. That said, a generally positive risk tone, which tends to dent demand for the safe-haven JPY and lend support to the risk-sensitive Australian Dollar (AUD), should help limit any meaningful downfall ahead of the RBA Governor Michele Bullock’s press conference at 05:30 GMT.

AUD/JPY

Overview
Today last price	104.13
Today Daily Change	-0.18
Today Daily Change %	-0.17
Today daily open	104.31

Trends
Daily SMA20	104.01
Daily SMA50	102.49
Daily SMA100	100.28
Daily SMA200	98.28

Levels
Previous Daily High	104.36
Previous Daily Low	103.59
Previous Weekly High	104.8
Previous Weekly Low	103.08
Previous Monthly High	104.87
Previous Monthly Low	99.93
Daily Fibonacci 38.2%	104.07
Daily Fibonacci 61.8%	103.88
Daily Pivot Point S1	103.81
Daily Pivot Point S2	103.32
Daily Pivot Point S3	103.05
Daily Pivot Point R1	104.58
Daily Pivot Point R2	104.85
Daily Pivot Point R3	105.34

Author

Haresh Menghani

FXStreet

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

Markets move fast. We move first.

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

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.