AUD/JPY retreats from 83.70 as RBA keeps key rates unchanged at 0.10%
- AUD/JPY has slipped below 83.50 as RBA has maintained the status quo by keeping OCR unchanged at 0.10%.
- RBA’s decision is in-line with the market estimates of unaltered borrowing rates.
- China’s upbeat Caixin Manufacturing PMI may strengthen the aussie post the volatility of RBA’s decision.
The AUD/JPY pair has slipped from Monday’s high of 83.72, as the Reserve Bank of Australia (RBA) keeps its monetary policy unchanged, with OCR at 0.10%. The RBA has preferred to combat the turmoil from the Russia-Ukraine war rather than the soaring inflation.
The decision is in line with the market estimates. In the latest Feb. 18-24 Reuters poll, economists brought forward their rate hike expectations for a fourth straight month and expect the RBA to raise its key interest rate by 15 basis points to 0.25% in the July-September quarter.
Earlier on, the AUD/JPY pair was trading flat around 83.57 after easing from higher but held on its ground, awaiting the RBA’s monetary policy announcement to initiate further positions.
The cross showed a stabled upside move on Monday after a bearish gap opening led by peace talks between Russia and Ukraine towards a ceasefire. The chatters ended without any materialistic outcome. Although, the cross closed flat on Monday but pared its losses backed by optimism on the next round of Russia-Ukraine peace talks, which is due this week.
Meanwhile, China reported upbeat Caixin Manufacturing PMI at 50.4, higher than the previous print and market estimates of 49.1 and 49.3 respectively. This may help limit the losses in the aussie in comparison with the Japanese yen.
AUD/JPY Technical Analysis
On a four-hour scale, AUD/JPY is hovering around the trendline placed from January 05 high at 84.30. The 50-period and 200-period Exponential Moving Averages (EMA) are aiming higher and confirm the establishment of a bullish bias. The Relative Strength Index (RSI) (14) is oscillating in a range of 40.00-60.00, which indicates a consolidating move. However, a print above 60.00 will trigger bulls for further upside.
-637817030787753610.png)
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
