AUD/JPY bounces-back towards 87.65 post-RBA
- Firmer USD/JPY supports alongside risk-on.
- RBA keeps policy steady for the 14th straight month.
The AUD/JPY crossed caught a fresh bid-wave and spiked to fresh daily tops above 87.60 levels in a knee-jerk reaction to the RBA steady policy decision, as widely expected.
AUD/JPY underpinned by risk-on
The cross bounced-off from near daily lows and regained 5-DMA at 87.54, as markets read the policy statement as neutral, against expectations of a more dovish tilt in the wake of slowing price pressures.
RBA policy decision: Rates unchanged at 1.5%, appreciating AUD would slow economic pickup
Meanwhile, strengthening USD/JPY on the back of risk-on rally seen in the Japanese stocks, following yesterday’s oil-price rally, also helps keep the buoyant tone intact around the cross. The Japanese benchmark index, the Nikkei 225, jumps over 1% to 22,780 points.
Markets will continue to digest the RBA policy outcome ahead of the US JOLTS job openings data and Fedspeaks due later in the NA session.
AUD/JPY Levels to consider
Omkar Godbole, Analyst at FXStreet noted: “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).”