AUD/JPY rests at 100-day MA ahead of RBA
- AUD/JPY trades around 100-day MA of 87.46.
- RBA to keep rates unchanged, focus on language on inflation, retail sales.
AUD/JPY is changing hands at 100-day MA level of 87.46 this Tuesday morning, with investors eyeing the RBA rate decision.
The central bank is expected to keep interest rates unchanged. It would be interesting to see what the RBA thinks about the recent weakness in inflation and retail sales. Aussie dollar could run into a wave of offers if the RBA sounds more cautious.
Meanwhile, the Japanese Yen could remain on the back foot if the equity markets remain bid. Australia's ASX 200 rose above 6000 for the first time since Feb. 2008 and that could be keep the JPY under pressure.
AUD/JPY Technical Levels
A move above 87.66 (previous day's high) would open up upside towards 87.79 (Oct. 17 low) and 88.00 (zero levels). On the downside, breach of support at 87.41 (session low) could yield a pullback to 87.18 (previous day's low) and 87.00 (zero levels).