AUD/JPY sold-off into RBA Lowe’s comments, breaches 79.00
- AUD/JPY declined to 78.80 after RBA Governor’s speech on early Wednesday.
- Lowe failed to please Aussie buyers after yesterday’s upbeat RBA.
- The pair has 78.60 as immediate support together with 80.00 acting as nearby resistance.
The Australian dollar dropped almost 80 pips to 78.80 against the JPY last minutes following the latest comments from the Reserve Bank of Australia (RBA) Governor Philip Lowe. Adding to the sentiment was the Yen recovery at the start of Japanese market trading.
The RBA Governor Lowe appeared for a speech at the National Press Club, Sydney where audience questions were expected. Lowe said that the downside risks to the domestic economy have increased while also indicating the probabilities on next rate move to be more evenly balanced.
The central banker went further on favoring the future rate cut than the otherwise but based his signals on economic improvement.
With the Governor’s statements falling short of confirming yesterday’s RBA remarks, the Aussie sellers stepped forward and took almost 80 pips off the AUD/JPY pair. The RBA yesterday cut the mention of downside rate change while leaving the monetary policy at hold. Investors also emphasized on the central bank’s upbeat statements for the likely improvements in the employment sector.
AUD/JPY Technical Analysis
The AUD/JPY pair has 78.60 as immediate support, breaking which it can further drop to the 78.00 and then to the 77.50 rest-points.
Alternatively, the 79.90 and the 80.00 can limit the pair’s immediate upside, breaking which 80.60-65 may gain buyers’ attention.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
