THE coming week have line up of economic data print and how it might affect the AUD/JPY trade directional bias .
Upcoming Economic Data:
AUD Cash Rate: Forecast 4.10%, Previous 4.35%
RBA (Reserve Bank of Australia) Monetary Policy Statement
RBA Rate Statement
Analysis:
Cash Rate Cut: The forecast indicates a cut in the AUD cash rate from 4.35% to 4.10%.
A rate cut typically weakens the currency as Lower interest rates makes the currency less attractive to foreign investors seeking higher returns.
RBA Monetary Policy Statement and Rate Statement: These statements provide insights into the RBA's outlook on the economy and future monetary policy decisions.
Hawkish Tone: If the RBA statements suggest that the rate cut is a one-off event and that the central bank remains vigilant about inflation, it could mitigate the negative impact of the rate cut on the AUD.
Dovish Tone: If the RBA statements indicate further rate cuts are likely or express concerns about economic growth, it would likely reinforce the bearish sentiment for the AUD.
Bearish Scenario: If the RBA cuts rates and issues a dovish statement, AUD/JPY is likely to decline. Several technical analyses suggest a bearish outlook for AUD/JPY14. A break of a trendline could signal further bearish moment
Bearish Bias: Given the likelihood of a rate cut and the potential for a dovish RBA statement, the initial bias for AUD/JPY next week is bearish. Look for opportunities to sell AUD/JPY, especially if technical indicators confirm the downtrend.
Monitor RBA Statements: Pay close attention to the RBA's monetary policy statement and rate statement. Any hawkish signals could provide a temporary boost to the AUD, but the overall trend is likely to remain bearish if the rate cut is confirmed.
TRADE WITH CAUTION
Upcoming Economic Data:
AUD Cash Rate: Forecast 4.10%, Previous 4.35%
RBA (Reserve Bank of Australia) Monetary Policy Statement
RBA Rate Statement
Analysis:
Cash Rate Cut: The forecast indicates a cut in the AUD cash rate from 4.35% to 4.10%.
A rate cut typically weakens the currency as Lower interest rates makes the currency less attractive to foreign investors seeking higher returns.
RBA Monetary Policy Statement and Rate Statement: These statements provide insights into the RBA's outlook on the economy and future monetary policy decisions.
Hawkish Tone: If the RBA statements suggest that the rate cut is a one-off event and that the central bank remains vigilant about inflation, it could mitigate the negative impact of the rate cut on the AUD.
Dovish Tone: If the RBA statements indicate further rate cuts are likely or express concerns about economic growth, it would likely reinforce the bearish sentiment for the AUD.
Bearish Scenario: If the RBA cuts rates and issues a dovish statement, AUD/JPY is likely to decline. Several technical analyses suggest a bearish outlook for AUD/JPY14. A break of a trendline could signal further bearish moment
Bearish Bias: Given the likelihood of a rate cut and the potential for a dovish RBA statement, the initial bias for AUD/JPY next week is bearish. Look for opportunities to sell AUD/JPY, especially if technical indicators confirm the downtrend.
Monitor RBA Statements: Pay close attention to the RBA's monetary policy statement and rate statement. Any hawkish signals could provide a temporary boost to the AUD, but the overall trend is likely to remain bearish if the rate cut is confirmed.
TRADE WITH CAUTION
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.