AUD/JPY strengthens after RBA keeps rates unchanged

Bid tone around AUD strengthened after RBA kept rates unchanged, pushing AUD/JPY cross higher to 84.65 levels.

RBA warns on AUD

RBA said recent AUD appreciation could complicate economic adjustment, however, the appreciation partly also represents higher commodity prices. Furthermore, it also called the current policy setting as appropriate.

Aussie spiked to fresh session highs, before trimming gains slightly around 84.50 levels. Gains are being capped by strength in Yen on account of losses in Nikkei and other Asian markets.

AUD/JPY Technical Levels

The immediate hurdle is noted at 84.88 (100-DMA), above which gains could be extended to 85.31 (5-DMA) followed by 76.49 (200-DMA). On the other hand, a breakdown of immediate support at 83.52 (50-DMA) would expose support at 83.00 and 81.48 (Jan 26 low).