Tuesday, September 15, 2015

AUD/JPY drops on RBA (mins) and awaits BoJ

FXStreet (Guatemala) - AUD/JPY has dropped to the downside in suit of the Aussie as the RBA minutes were released.

AUD/JPY dropped almost half a cent on the back of the minutes as markets took profits out of an inflated Aussie where there were no changes to the RBA's tone as they continue to monitor the markets and economy.

The RBA minutes noted again that wage pressures are still weak and growth is expected to stay below average. Again, it was noted that Aussie is preferred to be lower to help sustain growth while the RBA will continue to monitor data while inflation remains on target for next two years.

AUD/JPY awaits BoJ

Next up for the cross is the BoJ and although we have had a very upbeat Kuroda of late, there could be comments in the press conference in respect to extending QQE if necessary which may weigh on the Yen . Analysts at BBH explained that he seems to be playing down the official core measure of CPI (which excludes fresh food), and seems to be placing more emphasis on the measure that excludes food and energy.

AUD/JPY levels

Technically, the cross remains supported, despite the drop, within the rising channel from aforementioned lows. The cross needs to remain above the hourly 20 SMA at 85.71 that guards space to 84.80 on the downside. To the upside, the 20 DMA at 85.70 is pressuring the recovery from below 82.20, while 92 remains key target on recovery.
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