AUD/JPY shoots to near 93.00 as RBA raises interest rate surprisingly by 25 bps to 4.10%

AUD/JPY tested 93.00 after the RBA surprisingly raised interest rates y 25 bps to 4.10%.
RBA believes that inflation in Australia has passed its peak, but at 7% is still too high.
The BoJ is expected to make a stealth intervention in the currency market to provide some cushion to the Japanese Yen.

Sagar Dua FXStreet

The AUD/JPY pair has jumped to near the crucial resistance of 93.00 after the announcement of a hawkish interest rate decision by the Reserve Bank of Australia (RBA). The RBA has raised its Official Cash Rate (OCR) by 25 basis points (bps) to 4.10%.

Considering the fact that Australian inflation turned stubborn again as the monthly Consumer Price Index (CPI) indicator rose to 6.8% in April from March’s 6.3% figure, RBA Governor Philip Lowe was forced to raise interest rates again so that the impact of sticky inflation could get restricted.

The commentary from RBA’S Lowe has opened doors for further policy tightening as he stated that some further tightening of monetary policy may be required. The central bank believes that inflation in Australia has passed its peak, but at 7% is still too high and it will be some time yet before it is back in the target range.

Going forward, Australia’s Q1 Gross Domestic Product (GDP) will be keenly watched. As per the estimates, the Australian GDP is seen expanding at a slower pace of 0.3% than the 0.5% expansion recorded in the last quarter. On an annual basis, the economic data is expected to drop to 2.4% vs. the prior release of 2.7%.

On the Japanese Yen front, the Bank of Japan (BoJ) is expected to make a stealth intervention in the currency market to provide some cushion to the Japanese Yen, which is facing the heat of expansionary monetary policy.

According to a Reuters report, bets against the Japanese Yen have risen to $8.6 billion equivalent, which was a similar level when Japan’s authorities intervened last year.

AUD/JPY

Overview
Today last price	92.98
Today Daily Change	0.61
Today Daily Change %	0.66
Today daily open	92.37

Trends
Daily SMA20	91.37
Daily SMA50	90.25
Daily SMA100	90.48
Daily SMA200	91.82

Levels
Previous Daily High	92.66
Previous Daily Low	92.14
Previous Weekly High	92.56
Previous Weekly Low	90.26
Previous Monthly High	92.44
Previous Monthly Low	89.16
Daily Fibonacci 38.2%	92.34
Daily Fibonacci 61.8%	92.46
Daily Pivot Point S1	92.12
Daily Pivot Point S2	91.86
Daily Pivot Point S3	91.59
Daily Pivot Point R1	92.64
Daily Pivot Point R2	92.91
Daily Pivot Point R3	93.17

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.

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