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AUD/JPY up modestly as traders await RBA minutes

FXstreet.com (Barcelona) - The AUD/JPY rallied Monday on the general “risk on” attitude that was dominant globally. However, the rally faded in the latter part of the session and traders are now hunkering down for RBA-related volatility.

AUD/JPY to react to meeting minutes out of the Reserve Bank of Australia

The rally in risk that ensued Sunday night / Monday morning lifted the AUD/JPY as traders sought out ways to get the most bang for their efforts as long as the rally lasted. Those skilled enough or lucky enough to get out of their long positions by 11:30 GMT were able to cash in nicely. Those who held their longs hoping for a true bear-crushing rally saw more than half of the gains from Friday’s close to Monday’s peak fade away.

Tuesday brings a big market-moving announcement in the minutes from the RBA’s latest monthly interest rate policy meeting.

Technical outlook for AUD/JPY

Technicians say that AUD/JPY is likely headed down to 90.83 before the current corrective move is over. They say the overall chart is still bullish and the drop to 90.83 is buyable. The upside target for the next move higher once this correction is over should be just above the recent high at 93.56.

MYR and IDR exposed to Fed liquidity risks

As we head towards the FOMC meeting on 17-18 September, further consolidation is expected in the Asian FX space. We have already seen dollar moves on changes in the Summers/Yellen run to take over the Fed chair at the end of Bernanke’s term. However, any similar moves running up to and beyond the FOMC meeting will be more important for volatility, rather than acting as an inflection point for any change in trends.
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AUD/USD supported above 0.9300 after RBA minutes

The AUD/USD foreign exchange rate is last quoted at 0.9320 off recent session lows at 0.9298 following RBA meeting minutes not expecting more rate cuts soon but still not out off the table.
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