AUD/JPY unmoved just above 81.50 following bland RBA Policy Statement

The Aussie remains uninspired by the RBA's Monetary Policy Statement.
With the JPY on the rise from positive GDP figures, the AUD/JPY looks set for a third straight day of declines.

Joshua Gibson FXStreet

The AUD/JPY is trading into 81.70 following the Reserve Bank of Australia's (RBA) Statement of Monetary Policy, which saw little new information for traders as the central bank remains firmly entrenched within its wait-and-see pattern, while the RBA hopes that a continued decline in the Aussie against the US Dollar will see some kind of economic revival for Australia by boosting exports.

The Aussie is trading into the extreme downside against the Japanese Yen, steering into the bearish end of consolidation that has been the hallmark of the AUD/JPY pair for most of 2018; traders are having a hard time of finding reasons to bid up the Aussie, with constant tensions through the broader market about trader wars keeping the JPY buoyant as the safe-haven of choice, and Australia's economy struggling to develop wheels under itself, while the RBA has stood pat on all policy decisions for two years straight.

Japan saw a welcome bounce in GDP figures in Friday's early markets, easing off of the brakes after the first quarter's contraction, further helping the Yen catch some buying action. The RBA SoMP marked the end of meaningful data for this week for either currency, and now broader-market risk sentiment will be seeing the AUD/JPY off into the weekend.

AUD/JPY levels to watch

The AUD is trading into five-week lows against the Yen, and bulls will be hoping for a bounce from the 82.50 level in order to make a last-ditch run at the week's high of 82.80, though selling pressure remains high and popular swing low points from 80.50 to 81.10 remain nearby.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.