AUD/JPY Holds April Lows Support Ahead of RBA on Tuesday
Ahead of the key RBA monetary policy decision on Tuesday, the AUD/JPY pair continues to find some buying interest at lower levels, assisting the pair to hold its neck above 81.00 round figure mark.
Last week's quarterly CPI data showed Australia’s inflation dipping below 0.0% for the first time since the last quarter of 2006. This coupled with weaker-than-expected Chinese manufacturing PMI has now raised expectations of a possible RBA rate-cut on Tuesday. According to the data released by the National Bureau of Statistics on Sunday, the official Chinese manufacturing PMI unexpectedly fell to 50.1 in April from 50.2 in March. Being Australia's largest trading partner, Chinese economic data effects does impact Australia's economic and it's monetary policy stance.
Technical levels to watch
From technical perspective, April low of 80.70-65 area would be eyed to extend immediate support. Decisive break below this immediate support has the potential to drag the pair back below 80.00 psychological mark support (79.85-80 zone).
On the upside, day’s high near 81.20 level seems to act as immediate resistance. A convincing strength above this immediate resistance seems to open room for further recovery towards its next major resistance near 81.80-82.00 region.