Australia’s Consumer Price Index (CPI) for July-September was announced yesterday at 2.8%, lower than the forecast of 2.9% and a significant drop from last month’s 3.8%. Although the Reserve Bank of Australia (RBA) is still following a tightening policy, it’s likely that an interest rate cut could be coming soon.
The AUD/JPY exchange rate has been fluctuating within a narrow range around the 200-day moving average, located in the mid-100 yen range. There is a buildup of energy in this range, suggesting a possible breakout in either direction. If today’s Bank of Japan (BOJ) meeting indicates a positive stance on raising interest rates, this could trigger selling of AUD/JPY.
However, in case of a dip, there may be buyers aiming for a profit from interest rate differences, which may limit the downward movement.
Expected AUD/JPY Range: 101.30 – 99.50
Note: The above content does not guarantee any profit. Please make your own decisions before trading.