AUD/JPY erases losses as RBA keeps rates unchanged

• AUD/JPY recovers over 20 pips from session lows. 
• The RBA keeps key policy tools unchanged, says rate hikes unlikely before 2024.

The Reserve Bank of Australia's (RBA) status quo rate decision has put a floor under the Aussie dollar, lifting the AUD/JPY pair to 82.85 from the session low of 82.62.

The central bank kept the benchmark interest rate unchanged at a record low of 0.10% soon before press time and retained the three-year bond yield target at 0.1%. 

Wage and price pressures are expected to remain subdued, with the economy still having considerable spare capacity, the central bank said, adding that rates are likely to stay low until 2024. 

The central bank said it is willing to adjust its bond purchase program while talking about the recent spike in bond yields and financial markets' resulting instability. According to the bank, the Aussie dollar is now trading near the upper end of its multi-year range. 

RBA's comments on the exchange rate may keep buyers from taking aggressive longs on the Australian currency. The currency pair may fall back to session lows if the S&P 500 futures extend losses. At press time, the futures are down 0.34% on the day. 

Technical levels