Why Did AUD/JPY Drop to 102.00? | RBA's Rate Decision Impact Explained

The will cardano reach 10$AUD/JPY currency pair experienced notable fluctuations during Tuesday's Asian trading session, settling near 102.20 after the Reserve Bank of Australia (RBA) announced its decision to keep the cash rate unchanged at 4.35%. This anticipated move comes amidst evolving economic conditions that continue to shape monetary policy across global markets.

Market observers noted the Australian Dollar's muted response to the RBA's status quo decision, which followed recent inflation data showing unexpected resilience in price pressures. While Australia's Q1 inflation marked its fifth consecutive quarterly slowdown, the figures still surpassed initial forecasts. March's monthly CPI indicator further complicated the picture with an unanticipated surge, creating a complex backdrop for policymakers.

Financial institutions including Commonwealth Bank and Westpac have revised their outlooks, suggesting the current 4.35% rate may represent the cycle's peak achieved back in November 2023. Their projections indicate a gradual easing trajectory potentially bringing rates down to 3.10% by late 2025, reflecting expectations of moderating inflationary pressures over the medium term.

Meanwhile, the Japanese Yen faced headwinds from improving risk sentiment across financial markets. Japan's currency officials, including top diplomat Masato Kanda, signaled readiness to address excessive volatility, though stopped short of indicating imminent intervention. This comes after speculation about potential government action last week, when BoJ data suggested significant Yen-buying operations might have occurred in late April and early May.

The technical landscape for AUD/JPY shows the pair trading above key moving averages (20-day SMA at 100.59, 50-day at 99.31), suggesting underlying strength despite the recent pullback from weekly highs near 105.04. Fibonacci levels indicate potential support around 101.39-101.64, with resistance likely emerging near 102.74-103.44 based on pivot point analysis.

Market participants continue monitoring several critical factors that could influence the AUD/JPY cross: evolving risk sentiment, divergent monetary policy expectations between Australia and Japan, and potential currency intervention scenarios. The pair's sensitivity to commodity price movements and broader risk appetite makes it particularly responsive to shifts in global market conditions.