- AUD/JPY rises to a fresh session high of 76.95 after RBA keeps rates unchanged.
- The rate decision was expected to be a non-event for the markets.
- Coronavirus optimism, upbeat economic data propel AUD/JPY higher.
AUD/JPY is extending gains following the Reserve Bank of Australia’s (RBA) decision to keep key policy tools unchanged.
The central bank maintained the benchmark interest and the three-year yield curve control target unchanged at 0.10%, having reduced both last month in a bid to weaken the Aussie dollar.
The policy statement reiterated readiness to more if necessary and commitment to keep rates low for at least three years while warning that unemployment could rise further.
The rate decision was expected to be a non-event in the wake of increased coronavirus vaccine-led global economic recovery expectations.
The currency pair picked up a bid near 76.53 early Tuesday alongside the US stock futures’ positive action and Western Australia’s decision to reopen its borders to Victoria and New South Wales. Borders were closed to contain the second wave of coronavirus. Upbeat Aussie housing and current account data and China’s Caixin Manufacturing PMI likely added to the bullish tone.
The pair is currently trading at session highs near 76.95, representing a 0.5% gain on the day.
Technical levels
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