Audjpy Strong Post Rba

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Audjpy Strong Post Rba

Aud/Jpy Strong Above 94.50 Post Rba Decision

The AUD/JPY cross remains well-bid on Tuesday after the RBA's decision to keep rates unchanged for now. Although the cross met some sellers above 95.00, it has now stabilized and is sitting above 94.50 for now.

On the way down, the AUD/JPY cross can find support at 94.20 and then at 94.00. Similarly, the next resistance is near 94.70 and then 95.00.

Rba Keeps Ocr At 4.35%

The RBA's decision was widely anticipated and there was no surprise there. The RBA decided to not change the OCR in August, keeping the rates steady at 4.35%.

Now, the traders are waiting for more hints on the next move from the RBA as the inflation has once again resurfaced. That's why the upcoming press conference by Governor Bullock will be closely watched. Any hawkish comments from Bullock will send the AUD/JPY higher while dovish comments will send the cross lower.

Meanwhile, the AUD/JPY cross is driven by the risk-on impulse as evident from the rally seen in the global equity markets. This sentiment has undermined the JPY's appeal as a safe-haven status as funds are now moving towards other assets such as the AUD.

However, the real wages in Japan increased in June, the first such instance in almost 2 years. That will pave the way for the Bank of Japan to issue new rate hikes. As a result, we can expect the AUD/JPY cross to stop advancing and even turn lower.

Elsewhere, China is experiencing an economic slowdown, which makes it risky to invest in the Australian dollar. That's why it is safe to say that the AUD/JPY cross is at risk of correction until a near-term bottom is formed.

For now, the AUD/JPY has ended its 5-day losing streak and is now trading above the 94.50 with eyes set on the 95.00. However, any rate cuts from the RBA and yet another rate hike from the BoJ could send the AUD/JPY cross lower once again.

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