AUD/JPY dumped on RBA Debelle’s comments, eyes 88 handle

The Australian dollar came under further selling after the RBA Deputy Governor Debelle comments, knocking-off AUD/JPY closer towards 88 handle.

AUD/JPY faces double whammy

The cross receives double blow so far this session, having eroded almost 70-pips rapidly after RBA’s Debelle downplayed rate hike expectations, noting that he sees no automatic reason to follow rate hikes abroad.

Meanwhile, persisting risk-off trades amid renewed US political concerns, also boosts the safe-haven Yen at the expense of the higher-yielding Aussie.

Focus now shifts towards RBA Deputy Governor Bullock’s comments for further momentum on the cross.

Technical Levels

Higher side: 88.50 (psychological levels), 89.05 (daily top), 89.31 (multi-month tops)

Lower side: 88.03 (10-DMA), 87.50 (key support), 87.21 (20-DMA)