AUD/JPY slips below 85.00 post RBA decision


  • AUD/JPY lost part of its initial gains in the pre-European session.
  • AUD loses track post  RBA rate decision.
  • Yen mostly gains on its safe-haven appeal.

The AUD/JPY price erases earlier gains in an immediate reaction to RBA's status-quo on its monetary policy. The pair sharply fell from the highs near the 85 level comprising a 20-pip movement to touch the intraday low at 84.71.

At the time of writing, AUD/JPY is trading at 84.81, up 0.07% for the day.

As widely expected, the Reserve Bank of Australia kept its cash rate at a record low of 0.1% in its June meeting. The central bank did not offer any surprise for the market. However, the policymakers reaffirmed their commitment to stick with highly accommodative conditions until at least 2024. This, in turn, affects AUD  negatively.

The central bank insisted that the future course of monetary policy would be based on the actual inflation when it is within the 2% to 3% target.

The policymakers' tone was slightly positive on the labor market conditions citing improved employment situation with the unemployment rate declined to 5.5% in April.

The ongoing Victoria lockdown is not directly addressed by the central bank but referred to as a case of uncertainty that should be diminished as more population gets vaccinated.

On the other hand, the yen remained on the backfoot after the Organisation for Economic Cooperation and Development (OECD) cut the economic outlook after the Japanese policymakers had shown similar concerns on the economic recovery.

AUD/JPY Additional Levels

AUD/JPY

Overview
Today last price 84.8
Today Daily Change 0.05
Today Daily Change % 0.06
Today daily open 84.75
 
Trends
Daily SMA20 84.71
Daily SMA50 84.19
Daily SMA100 83.1
Daily SMA200 79.9
 
Levels
Previous Daily High 84.91
Previous Daily Low 84.6
Previous Weekly High 85.15
Previous Weekly Low 83.98
Previous Monthly High 85.8
Previous Monthly Low 83.93
Daily Fibonacci 38.2% 84.79
Daily Fibonacci 61.8% 84.72
Daily Pivot Point S1 84.59
Daily Pivot Point S2 84.44
Daily Pivot Point S3 84.28
Daily Pivot Point R1 84.9
Daily Pivot Point R2 85.06
Daily Pivot Point R3 85.22

 


 

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