AUD/JPY extends gains after status quo RBA decision

• AUD has picked up a bid after RBA's status quo rate decision. 
• AUD/JPY is extending gains, having hit a session high of 74.67 after RBA. 
• Markets were likely expecting the policy statement to sound dovish.  

AUD/JPY jumped nearly 30 pips to hit a session high of 74.67 after the Reserve Bank ofAustrlia kept interest rates unchanged at 0.75%, as expected. 

The policy statement said the the risks are still tilted to the downside, however, some of the downside pressures have weakened recently. 

While the bank reiterated that the Australian economy appears to have reached a gentle turning point, it maintained that low interest rates will be required in Australia to reach full employment and achieve the inflation target.

Further, the central bank expressed willingness to ease monetary policy further if needed to support sustainable growth in the economy. 

All-in-all, the policy statement offered little hawkish or dovish surprises. Even so, the AUD is extending gains. The Aussie's reaction indicates some traders were likely expecting the bank to sound somewhat dovish. 

Looking forward, the pair may continue to take cues from the broader market sentiment. As of writing, the futures on the S&P 500 are reporting a 0.22% gain, supporting the gains in AUD/JPY. 

Technically speaking, the pair has bounced up strongly from the support of the trendline rising from August and October lows, reinforcing the bullish bias. 

Technical levels