Search ForexCrunch
  • AUD/JPY traded a 25-pip range after the RBA cut rates and bond yield target. 
  • The dovish outcome was expected and priced in by markets. 

The AUD/JPY pair swung in both directions on Tuesday after the Reserve Bank of Australia (RBA) announced additional stimulus to support the economy as expected. 

The central bank cut the interest rate to a new record low of 0.15% from 0.25% and reduced the three-year bond yield target by 15 basis points to 0.10%. 

The RBA added that it plans to purchase A$ 100 billion worth of bonds over the next 6 months and would keep the size of the purchases under review. Also, the statement revealed that the policymakers are not expecting rate hikes for at least three years. 

All things considered, the was dovish, however, that outcome was generally anticipated and priced in by markets. As such, the losses in the AUD were muted at best. 

The AUD/JPY saw two-way business in the range of 73.95 to 73.70. 

Technical levels