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AUD/JPY pops up after RBA minutes

FXstreet.com (Athens)- The AUD/JPY was driven upwards as RBA minutes underscored that further rate cuts are not “imminent.”

AUD/JPY sees higher levels as RBA said “a cut is not imminent”

Volatility was ratcheting higher amidst RBA minutes but as soon as the RBA minutes revealed a soft, relatively “neutral” tone the pair started to move upwards. The RBA mentioned that the the ”labor market conditions are subdued, there is a recovery in housing market, a modest investment growth while the non-mining investment restrained.” The fuel-catalyst that drove the pair upwards was the key-phrase that “further rate cuts are not off the table, though a cut is not imminent.” Thus while the pair was trading in huge volatility before the RBA minutes, as soon as the release came out, it gathered uptrend momentum and moved higher. On the other side, the Japanese markets re-opened today, after the Respect for the Aged Day holiday on Monday. The Japanese PM Aso said that “Japan would like to formulate the extra budget without issuing bonds.”

Technical Analysis and Strategic Bias on AUD/JPY

The pair is trading higher at 92.34, up 0.08 after having hit a high as of 92.68 amidst the RBA minutes. The 200-DMA lies in 94.25 level, while the most closer to the 200-DMA high was last seen at 10th of June at 93.75. What’s more near this level, we had a daily high at the 10th of September (93.57). The FXstreet.com Trend Index shows the pair to be neutral in the 15 minutes timeframe. Daily pivot point support can be found at 92.33, 91.92, 91.69 and resistance at 93.23, 93.57 and 94.25, respectively.

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