AUD/USD drops post RBA meeting but EUR/JPY and USD/JPY rise as BoJ hikes
AUD/USD drops as RBA keeps rates on hold but EUR/JPY and USD/JPY rise as BoJ hikes for the first time in seventeen years.
AUD/USD drops like a stone
AUD/USD's move lower from its March high at $0.6667 has taken through the 200-day simple moving average (SMA) at $0.6557, now resistance, towards the February-to-March uptrend line at $0.6502 as the Reserve Bank of Australia (RBA) kept its rates on hold but retained a dovish tone.
Further down sits the $0.6478 early March low.
EUR/JPY nears key resistance
EUR/JPY's ascent from its ¥160.22 mid-March low is heading towards key resistance at ¥163.71-72 as the Bank of Japan (BoJ) scrapped its yield curve control and raised its rates for the first time in seventeen years. Above ¥163.71-72 lies the ¥164.31 mid-November peak.
Minor support now sits at Monday's ¥162.68 high.
USD/JPY on track for sixth straight day of gains
USD/JPY's swift advance is taking it back towards its ¥150.83 to ¥150.88 February highs and key resistance zone despite the BoJ hiking its rates for the first time in 17 years from -0.1% to 0-0.1%.
The central bank also discontinued ETF and J-REIT purchases, is to reduce corporate bond purchases and discontinue these in about a year, removed its yield curve control program but continues purchasing government bonds. Above ¥150.88 lurks the ¥151.73 October peak. Minor support sits at the ¥149.54 mid-February low.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
