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3 Feb 2015
AUD/JPY claiming back circa 50% of the RBA move
FXStreet (Guatemala) - AUD/JPY is trading at 90.55 with a high of 91.85 and a low of 89.37.
AUD/JPY has recovered over a cent of the 215 pip drop post the RBA 25bp rate cut. The Central Bank lowered the key policy rate by 0.25 percentage points to 2.25%, but at the same time, the market has priced in further rate cuts from their forthcoming policy meet ups later in the year, scheduled to meet in both March and April which may continue to be appropriate “on balance” to spur growth in their economy while inflation has been pressured lower towards the bottom of their target range.
Also, the RBA noted that there is still room for the Aussie to fall before meeting estimates of the right fundamental value for the economy against the back drop of the global economy, despite having already been pressured lower since their last December meeting.
So are we on the way for rates to be lower than 2.00% by the end of the year? This question will be weighing on the Aussie for the time being and puts the cross at a disadvantage trading with a bearish bias fundamentally. Technically, next support comes in at 88.24, the Feb 2014 low.
AUD/JPY has recovered over a cent of the 215 pip drop post the RBA 25bp rate cut. The Central Bank lowered the key policy rate by 0.25 percentage points to 2.25%, but at the same time, the market has priced in further rate cuts from their forthcoming policy meet ups later in the year, scheduled to meet in both March and April which may continue to be appropriate “on balance” to spur growth in their economy while inflation has been pressured lower towards the bottom of their target range.
Also, the RBA noted that there is still room for the Aussie to fall before meeting estimates of the right fundamental value for the economy against the back drop of the global economy, despite having already been pressured lower since their last December meeting.
So are we on the way for rates to be lower than 2.00% by the end of the year? This question will be weighing on the Aussie for the time being and puts the cross at a disadvantage trading with a bearish bias fundamentally. Technically, next support comes in at 88.24, the Feb 2014 low.