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  • AUD/JPY is better bid near 65.00 amid an uptick in the US stock index futures. 
  • RBA’s minutes show the policymakers were ready to deliver more stimulus if required. 

The AUD/JPY pair, a proxy for global risk sentiment, is looking to extend early gains despite the dovish tone of the minutes of the Reserve Bank of Australia (RBA) March meeting released soon before press time.

The RBA’s minutes showed the policymakers were prepared to ease monetary policy further to support the economy and to ensure the Australian financial system has sufficient liquidity. The central bank reduced the cash rate by a quarter percentage point to a new record low of 0.5% on March 2.

The policymakers were of the opinion that the virus outbreak was unlikely to show signs of a slowdown in the near future and it was difficult to predict the virus-led slowdown, the minutes showed. Further, the officials were confident that rate cuts would lower the Aussie dollar and boost cash flows to mortgage holders.

So far, the dovish tone of the minutes has been ignored by the markets, possibly because it is not surprising, given the backdrop of the coordinated monetary and fiscal easing across the globe.

The AUD/JPY pair continues to trade in green around 65.00, representing marginal gains on the day, having found bids near 64.52 in early Asia, possibly tracking the uptick in the S&P 500 futures.

The US index futures are currently reporting a 1.4 percent gain. The Aussie pair remains at the mercy of the broader market sentiment.

Technical levels