FxWirePro: AUD/JPY slips below 5&10 DMAs to hit fresh weekly lows at 84.53, BoJ major risk event
AUD/JPY slumps as dismal Australian CPI report raises bets for RBA rate cut at May 3rd meeting. Data released earlier today showed Australia’s Q1 headline CPI figures came in at -0.2% q/q versus +0.2% expected and +0.4% …
AUD/JPY slumps as dismal Australian CPI report raises bets for RBA rate cut at May 3rd meeting.
Data released earlier today showed Australia’s Q1 headline CPI figures came in at -0.2% q/q versus +0.2% expected and +0.4% previous. The trimmed mean CPI stood at +0.2% versus +0.5% expected and against +0.6% last.
Markets now raise bets for rate cuts by RBA in May. Chances for a rate cut by the RBA in May stand at 49% probability vs 16% before the CPI.
AUD/JPY has been struggling at strong trendline resistance since the 22nd last week. Downside likely to gather momentum post weak Australia inflation data.
Pair has also broken minor support at 84.60 levels. Tests of cloud top and trendline support at 84 now likely.
Break below will find next support at 83.61 (April 15th lows). Resistance on the flipside is seen at 85, 85.07 (10-DMA) and 85.48 (5-DMA).
BoJ meeting on Thursday is a major risk for the pair. The Bank of Japan is expected to deliver decisive steps to keep JPY lower.
