AUD/JPY: Big event is RBA and a possible surprise cut?
By FXStreet FXStreet (Guatemala) – AUD/JPY is currently trading at 85.35 with a high of 85.40 and a low of 85.23.
AUD/JPY has been trading within a narrow range, and remains in that range of 85.31 and 85.50 ahead of a big event day being with the RBA. Can the RBA justify holding out within their wait and see mode, where it seems inevitable that the headwinds of China’s slowdown will penetrate through and harmfully so to the Australian economy?
A tactic once taken already this year by the BoC shows that these Central Bank’s can and will surprise markets at the drop of… well, an interest rate cut.
A tactical rate cut has been predicted by some economists and while the Fed are unlikely to make a move in the current environment, the upside pressures to the Aussie might be worrisome for the RBA. However, the general consensus is that the RBA will hold out today, but a change in the statement could be enough to move the market.
AUD/JPY targets 86 handle
Technically, the 200 SMA is at 84.29 while the 20 SMA on the same time frame is tracing the ascending support line at 85.22. The …read more
Source:: FX Street
