Tuesday, 6 March 2018 11:32 WIB |
The AUD/JPY is unmoved by a lack of interest rate adjustment and is still quietly trading near 82.80 as the Tokyo session chugs along.
The Aussie barely registered the Reserve Bank of Australia's (RBA) decision to leave the interest rate unchanged at 1.5% today, as the markets have already long since priced in a lack of movement from the RBA well into 2019.
With economic data middling at best, growth potential for the Australian continent is becoming a distant hope, with stifled wage growth and the economy being supported in part by government infrastructure spending, as noted by the RBA in their policy statement. Wage growth in Australia is set to remain close to non-existent, and with household debt at unsustainable levels, consumer spending is unlikely to recover anytime soon as well.
The AUD/JPY pair is going to have to rely on Yen selling to climb further up the charts with bullish potential for the Aussie evaporating as other central banks around the world prepare to buckle down on easy monetary policy and begin lifting rates, with the US Fed and the UK's Bank of England (BOE) slated to raise rates in March and May, respectively.
AUD/JPY Level to watch
The pair is freshly into a correction after declining steadily through February, and the latest RBA rate decision leaves little on the table for the AUD bulls. The AUD/JPY may find a leg lower with the price running into resistance from the 8-day EMA, while the H4 charts shows the 50.0 Fibo level at 82.82 currently holding. Intraday support is priced in at 82.10 and 81.70, while a push higher will run into resistance from 83.25 to 83.50.
Source : FXstreet