AUD/JPY struggles to lure buyers, remains below 98.00 mark after RBA/BoJ announcements – Crypto News – Crypto News
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AUD/JPY renews weekly top around 95.00 on China stimulus, cautious optimism ahead of Jackson Hole AUD/JPY renews weekly top around 95.00 on China stimulus, cautious optimism ahead of Jackson Hole

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AUD/JPY struggles to lure buyers, remains below 98.00 mark after RBA/BoJ announcements – Crypto News

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  • AUD/JPY retreats from over a one-week high after the RBA and the BoJ announced their decisions.
  • The RBA decided to keep the benchmark rates unchanged for the third straight meeting in March.
  • The BoJ ends the negative interest rates era and also scraps the Yield Curve Control (YCC) policy.

The AUD/JPY cross continues with its struggle to find acceptance above the 98.00 mark and surrenders Asian session gains to over a one-week high. Spot prices drop to a fresh daily low after the Reserve Bank of Australia (RBA) and the Bank of Japan (BoJ) announced their policy decisions, albeit manage to attract fresh buyers in the vicinity of mid-97.00s.

As was unanimously expected, the Australian central bank decided to keep the Official Cash Rate (OCR) unchanged at the end of the March policy meeting. The Australian Dollar (AUD), however, started losing traction in the absence of any fresh hawkish signals, though signs of improving relations between Australia and China – the former’s biggest trading partner – help limit further losses.

Meanwhile, the BoJ announced lifting the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007, ending the negative interest rate era that began in 2016. The BoJ also scrapped its Yield Curve Control (YCC) policy at the conclusion of its two-day monetary policy meeting. The decision, however, was broadly in line with the market expectations and did little to influence the JPY.

Investors now look forward to the post-meeting press conference, where comments by BoJ Governor Kazuo Ueda will play a key role in influencing the JPY price dynamics and provide some meaningful impetus to the AUD/JPY cross. The mixed fundamental backdrop, meanwhile, makes it prudent to wait for strong follow-through buying before positioning for any further appreciating move.

 

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