- The RBA followed market-wide expectations of 0.25% rate cut but the rate statement grabbed Aussie buyers’ attention.
- Risk tone remains heavy amid doubts over the US-China trade truce.
Following its initial reaction to the Reserve Bank of Australia’s (RBA) rate-cut, the AUD/JPY pair currently rises to the intra-day high of 75.75 ahead of the European open on Tuesday.
The Australian central bank matched market-wide expectations of a 0.25% cut to its benchmark cash rate, drawing it to the record low of 1.0%.
However, the rate cut was much hyped and the central bank’s refrain from giving fresh clues about further such alterations seems to have grabbed the Australian Dollar (AUD) bulls’ attention.
Additionally, the rate statement cites a reasonable outlook for the global economy and manages to provide further strength to the Aussie.
The global gauge of risk sentiment, the US 10-year treasury yield, weakens to 2.015% by the press time as markets reassess the US-China trade truce amid no fresh action.
Traders may now concentrate on the trade developments surrounding the US and China for fresh impulse.
Technical Analysis
Not only 76.40 but 100-day exponential moving average (EMA) level of 77.10 also can limit the pair’s recent rise while 21-day EMA level of 75.28 offers immediate support.
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