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AUD/JPY pops on expected but steady RBA

9/4/2018, 1:50:43 PMMarket Analysis
AUD/JPY pops on expected but steady RBA

The AUD/JPY is testing near 80.20 immediately following the Reserve Bank of Australia's (RBA) latest rate statement, which saw the central bank unsurprisingly leave the interest rate unchanged at 1.50%, but introduced some cautiously optimistic language to give the bulls something to chew on.

The Australian central bank has left their base rate unmoved at 1.5%, as they have done so for the past two years straight plus a little more, and the RBA also lamented Australia's stubborn housing market and low wage growth, as is the norm. The RBA also noted that further progress on inflation and low unemployment are expected to continue to be gradual, though the RBA did prop up their inflation expectations for 2019 and 2020, with the important caveat attached that headline inflation in 2018 to remain "a little lower" overall, at 1.75%.

AUD/JPY levels to watch

With the AUD/JPY knocking on Monday's highs near 80.30, the goal for bulls will be to push the pair further into a bullish recovery towards the 81.00 major technical barrier, while shortsellers will be looking to get the bearish push from the previous week back on track and force the AUD back into 2018's lows at 79.50.