AUD/JPY hits fresh highs ahead of RBA

FXStreet (Mumbai) - AUD/JPY extends its uptrend for the second straight session, largely on the back of broad Australian dollar strength as traders eagerly await Reserve Bank of Australia’s (RBA) policy decision due out shortly.

AUD/JPY supported above 94 handle

Currently, the AUD/JPY trades higher by 0.22% at 94.36 levels, hovering close to fresh session highs posted at 94.40 some minutes ago. The AUD/JPY cross climbs higher mainly driven by gains seen in the Australian dollar ahead of RBA which may maintain a status quo this month shrugging of expectations of rate cut to record low.

The RBA last cut the cash rate to 2.25% in February, since then it has signalled that further policy loosening is on the cards if it is seen to be needed to support demand.

On the other hand, USD/JPY remains muted awaiting fresh incentives from a host of US data to be release later this week including the crucial NFP numbers.

AUD/JPY Technical Levels

The pair has an immediate resistance at 94.67 levels, above which gains could be extended to 95 levels. On the flip side, support is seen at 94.08 levels from here it to 93.69 levels.