AUD/JPY shaved-off gains and plummeted to fresh yearly lows as Reserve Bank of Australia (RBA) surprised most traders by cutting its policy rate to new record lows.
Sinks over 2% from 91.61 levels post RBA action
Currently, the AUD/JPY pair hit fresh 1-year low at 89.69, a recording 2.30% loss on the day, plunging from 91.61 levels after the policy announcement. The cross in AUD/JPY fell as RBA cut its cash rate by 25 bps to 2.25%, marking the first time in 17 months that the RBA has moved on rates.
The RBA Governor Stevens stated that the rate cut may spur demand and support in lifting economic growth and may also ensure that inflation expectations remain consistent with the 2-3% target.
AUD/JPY Levels to consider
To the upside, the next resistance is located at 90.50 levels and above which it could extend gains to at 91 levels. To the downside immediate support might be located at 89 levels below that at 88.50 levels.
Sinks over 2% from 91.61 levels post RBA action
Currently, the AUD/JPY pair hit fresh 1-year low at 89.69, a recording 2.30% loss on the day, plunging from 91.61 levels after the policy announcement. The cross in AUD/JPY fell as RBA cut its cash rate by 25 bps to 2.25%, marking the first time in 17 months that the RBA has moved on rates.
The RBA Governor Stevens stated that the rate cut may spur demand and support in lifting economic growth and may also ensure that inflation expectations remain consistent with the 2-3% target.
AUD/JPY Levels to consider
To the upside, the next resistance is located at 90.50 levels and above which it could extend gains to at 91 levels. To the downside immediate support might be located at 89 levels below that at 88.50 levels.
