3 May 2016
AUD/JPY smashed to fresh 2-month lows on RBA’s rate cut
AUD/JPY faced rejection just shy of 82 barrier and witnessed a sharp 180-pips fall after RBA’s surprised markets to the downside, by lowering the key interest rates to 1.75%.
AUD/JPY tests 80 handle
The AUD/JPY pair sinks -1.70% to fresh two-month lows of 80.03, eroding more than 2 big figures on RBA policy announcement. The cross shaved-off early gains and dived deeper into the red as the Australian dollar was hammered across the board on RBA’s unexpected rate cut decision. RBA decided to cut interest rates to a new record low of 1.75%, taking notice of rising AUD level and softer inflation outlook.
While adding to the downside, the yen also extended gains against the US dollar as the RBA decision triggered a renewed selling in the USD/JPY, hitting the lowest levels in eighteen months.
Looking ahead, the cross will continue to track the broader market sentiment against the backdrop of the latest RBA’s rate cut decision.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 81/81.23 (round number/ 5-DMA) and above which it could extend gains to at 81.84/94 (daily R1 & high).To the downside immediate support might be located 80.03/00 (two-month lows) below that at 79.75 (March low).
AUD/JPY tests 80 handle
The AUD/JPY pair sinks -1.70% to fresh two-month lows of 80.03, eroding more than 2 big figures on RBA policy announcement. The cross shaved-off early gains and dived deeper into the red as the Australian dollar was hammered across the board on RBA’s unexpected rate cut decision. RBA decided to cut interest rates to a new record low of 1.75%, taking notice of rising AUD level and softer inflation outlook.
While adding to the downside, the yen also extended gains against the US dollar as the RBA decision triggered a renewed selling in the USD/JPY, hitting the lowest levels in eighteen months.
Looking ahead, the cross will continue to track the broader market sentiment against the backdrop of the latest RBA’s rate cut decision.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 81/81.23 (round number/ 5-DMA) and above which it could extend gains to at 81.84/94 (daily R1 & high).To the downside immediate support might be located 80.03/00 (two-month lows) below that at 79.75 (March low).