AUD/JPY: Sellers aiming for 85.00 post RBA

By FXStreet FXStreet (Bali) – AUD/JPY continues to edge lower following the RBA monetary policy decision, in which rates were kept at 2% as widely expected by economists surveyed via Bloomberg, with the spot rate last trading at 85.20 day lows after an initial topside fade above 86.00.

RBA keeps implicit easing bias

The RBA noted that scope for further easing still exists if needed, while adding that monetary policy needs to be accommodative as low rates keep supporting demand. With regards to the Australian Dollar, the RBA said that it continues to adjust to significant declines in commodity prices. The RBA sounded quite optimistic on the economy, saying there are reasonable prospects for continued growth, and that expansion in non-mining parts of the economy strengthened during 2015.

AUD/JPY key levels for today

On the downside, 85.30/40 is a strong area of support, as per sequence of multiple bounce of the level since the BOJ negative rates decision. Below this area, 85.00 comes int focus as next area of liquidity, followed by 84.50, which happens to align with the origin of demand post BOJ. On the topside, 85.50 becomes now first hurdle, followed by 85.85 daily pivot and 86.00 round number, ahead of 86.40/50.
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Source:: FX Street