AUD/JPY holds onto recovery gains following RBA’s rate cut
- RBA matched wide market expectations of a 0.25% rate cut.
- Markets remain volatile amid the rush to safeguard against the coronavirus.
- Aussie employment, Japan inflation data, BOJ minutes were mostly ignored earlier.
- Speech from the RBA Governor Philip Lowe will be followed for fresh impulse.
Following the RBA’s 0.25% rate cut during the emergency meeting to counter coronavirus (COVID-19), the AUD/JPY accelerate its recovery moves to 60.90, up during the early Thursday.
The central bank also targets the three-year bonds at 0.25% in order to combat the deadly virus.
Read: Breaking: RBA cuts Official Cash Rate by 25 bps to 0.25%, AUD/USD bounces
February month Aussie jobs report and Japan National Consumer Price Index (CPI), coupled with BOJ minutes, occupied the economic calendar in Asia. While Australian employment data portrayed surprisingly upbeat scenario of the economy, even amid the pessimistic times, Japanese inflation data flashed soft numbers whereas BOJ minutes reiterating the central bank’s readiness to announce a multibillion-dollar package to counter the pandemic.
Even so, the pair failed to recover from the lower since early-2009 as risk-tone dwindled. Among the major catalysts were the ECB’s €750 billion pandemic emergency purchase programme (PEPP) and calls that Japan is considering an economic package worth over 30 trillion yen.
While portraying the trade sentiment, the US 10-year treasury yields renew declines to 1.225%, down three basis points (bps), whereas stocks in China and Japan follow the footsteps of Wall Street.
Investors will now wait for the RBA Governor’s speech, at 05:00 GMT, for further trade directions while news concerning the global rush to combat the deadly virus will remain in the spotlight.
While 60.00 can offer immediate support to the pair, the year 2009 low near 55.50 is on the bears’ radars. On the contrary, buyers will not look for entry unless the AUD/JPY prices remain below the monthly resistance line, currently near 65.30. However, 62.15 and 63.00 can entertain buyers during the short-term pullbacks.