AUD/JPY testing macro support near 84.00, RBA eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/JPY is testing a critical and very sticky area of support around 84.15/20, a buyers' stronghold ever since the level was reclaimed earlier in March.

    Risk-off flows add pressure to the pair

    The intense selling pressure in the Nikkei 225, currently down 1.42%, has taken its toll on Yen crosses, which has led USD/JPY to break through the psychological 111.00 handle, while the 30-year US Treasury yield keep dropping and the SP 500 futures nose-dive. The key event for AUD/JPY traders is due at 4.30 GMT, when the RBA releases its latest monetary policy statement.

    It's all about the RBA, rates to stay on hold

    Earlier in the session, we quoted Bill Evans, Chief Economist at Westpac, who recently wrote: "It remains our long held view that the RBA will keep rates on hold for the remainder of 2016. Steady rates will come as no surprise to markets with the probability of a move that is priced into the curve running at just around 5%."

    RBA to reintroduce 'jawboning' the Aussie?

    While sellers have had a hard time trying to break the 84.00 area, today's RBA could represent a strong catalyst for the pair to move either direction. Most of the focus will be on Governor Stevens' view on the rising AUD and whether or not the board finds it justifiable to step up the rhetoric against a surging Australian Dollar, having reached levels of 77 cents against the US Dollar in recent days.
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