AUD/JPY recovers 80.00 handle after RBA decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/JPY has seen a pop off lows in response to neutral outcome by the RBA in today's monetary policy decision, sending the exchange rate over 30 pips higher from 79.87 up towards 80.25/30 day highs, with acceptance above the big round number now key for the prospects of a further recovery.

    RBA not hinting at immediate rate cuts

    In its policy statement, the RBA noted: "At today's meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate."

    RBA added: "Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand."

    AUD/JPY key levels

    As mentioned, an acceptance above the 80.00 handle is now necessary to allow additional gains towards 80.30 immediate resistance (intraday horizontal level), with the real test coming at 80.50, as gains above this level may see the pair challenge recent swing highs at 80.80/81.00. On the downside, price needs to clear 79.50 to expose further downside and accelerate losses.
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