RBA left cash rate target unchanged at 0.10% as widely expected. The board maintained that it “will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.”. For now, it is “too early to conclude that it is sustainably within the target range”, and RBA is “prepared to be patient”.
AUD/JPY is staying established after the release. Price action from 86.24 high are seen as developing into a sideway corrective pattern, with rise fro 78.77 as the second leg. That is, further rally is in favor as long as 81.99 support holds. Break of 84.27 will target 100% projection of 78.77 to 84.27 from 80.34 at 85.84. However, even in this case, upside should be limited by 86.24 high to bring another falling leg to complete the three-wave corrective pattern.
Meanwhile, break of 81.99 support will argue that it’s developing into a deeper correction, instead of a sideway pattern. Deeper fall should then be seen through 80.34 to 78.77 and below.
