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Australian dollar falls after RBA minutes. AUD/JPY hits lowest since February

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AUD/JPY through the July low

AUD/JPY is down 32 pips in the aftermath of the RBA minutes. They said the central bank “would be prepared to act in response to further bad news on
the health front should that lead to a more significant setback for the
economic recovery.”

That’s arguably happening right now as lockdowns are extended and NSW has record case numbers day after day.

The Australian dollar is lower across the board but the chart I’m watching is AUD/JPY, which has extended today’s decline through the July intraday low to touch the worst levels since February.

The pair is now into a large airpocket of solid support, though some may point to the late-January low of 79.20.

AUD/JPY through the July low

I tend to be skeptical of moves around central bank meeting minutes. There’s nothing equivocal in the text and the RBA points to fiscal support as a more-important lever and that more QE would have an their maximum effect in 2022, when they see strong growth returning.

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