AUD/JPY consolidates below 82.00 ahead of RBA Decision
- AUD/JPY prepares to correct towards 80.50 in the near term.
- RBA is likely to delay tapering due to the worsening COVID-19 situation.
- Japan’s Q2 GDP is set to be released at 23:50 GMT on Tuesday.
AUD/JPY is trading in a 20 pip range between 81.50 and 81.70 ahead of the Reserve Bank of Australia’s (RBA) monetary policy meeting on Tuesday and the pair remains steady around 81.70 at the time of writing.
Asian markets closed higher on Monday as risk-on sentiment prevailed after the US jobs data missed estimates last week. It is helping the risk associated Aussie dollar to rally while the safe-haven Japanese yen remains under pressure.
The S&P 500 futures are trading around 4,543, down 0.06% while the US 10-year yields are up 0.29% around 1.326% at the time of writing. Meanwhile, the US dollar index (DXY) holds the 92.20 mark.
Japan’s Nikkei 225 has soared to 29,659 rising close to 4% since Friday, on the news of PM Suga’s resignation. The market is now expecting a fiscal stimulus from the new leader, putting further pressure on the Japanese yen.
On the macro front, Australia’s RBA will be meeting on Tuesday, for its guidance on the interest rate and monetary policy.
The central bank is likely to keep rates unchanged at 0.1%, extending its easy money policy and further delay tapering, due to the worsening Delta variant covid situation in the country.
Meanwhile, Japan’s second-quarter Gross Domestic Product (GDP) is set to be released later at 23:50 GMT on Tuesday. It is expected to marginally rise to 0.4% versus 0.3% previous.
Technical levels
AUD/JPY is trading steady around the 81.70 mark, after taking out five-week resistance near 81.60 earlier.
The single currency pair is now facing resistance around 82.70, the July 13 high.
Immediate support is just below 81.00, the September 2 low.