Today the Australian dollar (aud dollar) received a portion of optimism against the decision of the Reserve Bank of Australia’s monetary policy. Regulator quite unexpectedly kept interest rates unchanged at 2.25%. Given that the Reserve Bank of Australia previously stated about the possibility of a rate cut at the April meeting and the market to price in a similar outcome with a probability of 75%, this decision was a positive, which allowed him to strengthen against major opponents.
The position of the Reserve Bank of Australia, which is still ready to keep monetary policy unchanged (even though the comment that in the future may require additional mitigation), is more rigid than the policy of the Bank of Japan, which has long been conducting stimulation. All this will allow the Australian dollar (aud dollar) in the short term to continue to strengthen.
|Aud jpy chart|
Support and resistance levels
Support 1 91,62
Support 2 90,77
Current price: 91,98
Resistance 1 92,07
Resistance 2 92,77
AUD/JPY – buy – Buy at breakdown of the level of 92.07 with a view at the level of 92.77. Stop-Loss = 91,62
Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes only and do not guarantee the results obtained.