AUD/JPY: Stays firm above 84.00 ahead of RBA
- AUD/JPY rises for the ninth consecutive day amid risk-on mood.
- RBA is expected to maintain status-quo but the rate statement will be the key for bulls.
- China Caixin Services PMI, second-tier Aussie and Japan data will also be important for fresh impulse.
AUD/JPY takes the bids around 84.35, up 0.09% intraday, as Asian traders gear up of full markets during the initial Tuesday. The pair justifies the upbeat sentiment while keeping the two-week-old rise ahead of the key monetary policy meeting of the Reserve Bank of Australia (RBA).
Not only the strong US data and faster vaccinations in America and Britain but hopes of the further stimulus also favor the risk barometers off-late. After last week’s heavy run-up in the lead US jobs report figures and ISM Manufacturing PMI for March, Monday’s ISM Services PMI also rallied to the record top and favored the market optimists.
Also on the positive side could be US President Joe Biden’s push for more economic relief, despite Republican’s dislike for the tax-hikes, as well as the UK’s unlock proceeding.
It should, however, be noted that the recent jump in the coronavirus (COVID-19) figures from China and India test the AUD/JPY bulls. Though a lack of major activity amid off in Asia–Pacific the previous day seemed to have turned down the skepticism.
It’s worth mentioning that the recent comments from the Bank of Japan (BOJ), suggesting a serious impact of rate-cut on regional financial firms, conveyed by The Minachi news, also probe the optimists.
Amid these plays, Wall Street benchmarks stayed on the front foot whereas the US 10-year Treasury yields eased.
Moving on, Australia’s ANZ Job Advertisements for March, prior 7.2%, followed by China’s Caixin Services PMI for the said month, expected 51.7 versus 51.5 previous readouts, will provide the immediate direction to the AUD/JPY prices. Considering the recent dwindling in Beijing’s Caixin Manufacturing PMI, the pair buyers may remain cautious. However, the Reserve Bank of Australia’s (RBA) monetary policy meeting is likely to praise the latest market optimism while holding the benchmark rate and quantitative easing (QE) unchanged, which in turn can favor the bulls.
Technical analysis
Unless breaking below 83.70, AUD/JPY seems all set to attack the 85.00 immediate resistance.
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.
