The AUDJPY currency pair is picking up momentum near the level of 94.50 before important events in Australia.

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• AUD/JPY gains traction around 94.50 ahead of Australia’s key events.

The pair currently trades last at 94.4940.

The previous day high was 94.42 while the previous day low was 93.86. The daily 38.2% Fib levels comes at 94.07, expected to provide support. Similarly, the daily 61.8% fib level is at 94.21, expected to provide support.

The AUD/JPY cross snaps the two-day losing streak during the Asian session on Monday. The cross currently trades near 94.51, up 0.17% on the day. The Reserve Bank of Australia (RBA) monetary policy meeting and the Gross Domestic Product (GDP) due on Tuesday and Wednesday could trigger volatility in the market.

The Australian Labour government will introduce legislation to close “loopholes” in workplace law on Monday, which is opposed by business organizations who are concerned about increased expenses as a result. This, in turn, might encourage employers to pay more and can foster inflation higher.

About the data, the latest data from the University of Melbourne showed that Australian annual TD Securities Inflation for August surged 6.1% versus 5.4% in the previous month. On a monthly basis, the figure rose 0.2% versus 0.8% prior.

The RBA is expected to keep its key interest rate unchanged at 4.10% on Tuesday’s meeting as inflation shows signs of easing, according to a Reuters poll. However, market players anticipate that the central bank will maintain its hawkish stance and might hike rates further later this year.

On the other hand, the Japanese Monetary Base data for August revealed a rise of 1.2% YoY compared to the previous reading of a 1.3% drop. On Friday, Japanese Finance Minister Shunichi Suzuki stated that although sudden fluctuations in currencies are undesirable, there is no visible indication of intervention in the market to shore up the weak yen. However, the policymaker will closely watch the currency move, according to Reuters. The Bank of Japan (BOJ) maintains its loose monetary policy, while shifting away from yield curve control. BoJ Board member Toyoaki Nakamura said last week that policymakers need more time to transition to monetary tightening. That said, the monetary policy gap between Australia and Japan is still the factor behind the yen’s weakness.

In the absence of top-tier economic data release from Japan, the AUD/JPY cross continues to be at the mercy of AUD price dynamics. The key event this week will be the Reserve Bank of Australia (RBA) Interest Rate Decision. Also, the Australian Gross Domestic Product (GDP) for the second quarter will be due on Wednesday. Traders will take cues from these data and find trading opportunities around the AUD/JPY cross.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 94.5 at the time of writing. Pair opened at 94.35 and is trading with a change of 0.16 % .

The pair is trading above its 20 Daily moving average @ 93.98, below its 50 Daily moving average @ 94.59 , above its 100 Daily moving average @ 93.33 and above its 200 Daily moving average @ 91.92

The previous day high was 94.42 while the previous day low was 93.86. The daily 38.2% Fib levels comes at 94.07, expected to provide support. Similarly, the daily 61.8% fib level is at 94.21, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 94.0, 93.65, 93.44
• Pivot resistance is noted at 94.56, 94.77, 95.13

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