AUD/JPY REMAINS ON THE DEFENSIVE ABOVE 104.00, MOVES LITTLE AFTER RBA DECISION
- AUD/JPY fails to capitalize on the overnight goodish rebound from a multi-day low.
- BoJ Governor Ueda's hawkish remarks underpin the JPY and cap gains for the cross.
- The RBA’s decision to leave interest rates unchanged fails to provide any impetus.
The AUD/JPY cross attracts some sellers following an Asian session uptick on Tuesday and stalls the overnight bounce from the 103.60-103.55 area or a multi-day low. Spot prices remain on the defensive after the Reserve Bank of Australia (RBA) announced its policy decision and currently trade just above the 104.00 round-figure mark.
As was widely anticipated, the RBA decided to keep the Official Cash Rate (OCR) unchanged at a 12-year high level of 4.35% for the fifth successive meeting in June and retained its hawkish stance. The central bank, meanwhile, is expected to leave the door open for a rate hike this year in the wake of still sticky inflation, which, in turn, could act as a tailwind for the Australian Dollar (AUD) and lend support to the AUD/JPY cross.
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