AUD/JPY lower as RBA does not see strong case for near-term change in cash rate

• AUD/JPY is lower despite the RBA’s GDP and CPI forecasts being a little higher.
• AUD/USD dropped from 0.7265 to 0.7246 on the RBAs Statement on Monetary Policy and dragged the cross to 82.71.

AUD/JPY has dropped on the RBAs Statement on Monetary Policy and one of the main catalysts for a lower Aussie has been due to the unemployment rate forecast being a little lower.

• RBA’s SoMP: No strong case for a near-term rate change, inflation forecasts revised up a little

The following are the key points today’s RBA’s Statement on Monetary Policy:

• Board does not see strong case for near-term change in cash rate
• The GDP and CPI forecasts have nudged a little higher.
• The unemployment rate forecast a little lower.
• No case for a near term policy move on the cash rate.

Meanwhile, USD/JPY targets above 114.74 with a very wide scope towards  118.66, the December 2016 high. Analysts at Commerzbank argued that the market is underpinned by the  55 day  ma (112.40) and cloud support (112.93/15).  

AUD/JPY levels

RSI has been turning negative after rising to OB territory. AUD/JPY has been capped by R1 at 83.06 before the double top at 82.25. The pair  is now resting at the pivot at 82.79 but a breakdown opens 81.92 on the wide. 80.64 is a key 61.8% Fibo and 80..25 is a 50% Fibo level.