AUD/JPY testing macro support near 84.00, RBA eyed

By FXStreet AUD/JPY is testing a critical and very sticky area of support around 84.15/20, a buyers’ stronghold ever since the level was reclaimed earlier in March.

Risk-off flows add pressure to the pair

The intense selling pressure in the Nikkei 225, currently down 1.42%, has taken its toll on Yen crosses, which has led USD/JPY to break through the psychological 111.00 handle, while the 30-year US Treasury yield keep dropping and the SP 500 futures nose-dive. The key event for AUD/JPY traders is due at 4.30 GMT, when the RBA releases its latest monetary policy statement.

It’s all about the RBA, rates to stay on hold

Earlier in the session, we quoted Bill Evans, Chief Economist at Westpac, who recently wrote: “It remains our long held view that the RBA will keep rates on hold for the remainder of 2016. Steady rates will come as no surprise to markets with the probability of a move that is priced into the curve running at just around 5%.”

RBA to reintroduce ‘jawboning’ the Aussie?

While sellers have had a hard time trying to break the 84.00 area, today’s RBA could represent a strong catalyst for the pair to move either direction. Most of the focus will be …read more

Source:: FX Street