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Following the meeting of the Reserve Bank of Australia (RBA) on Tuesday, AUD/JPY stays on the defensive side with the supportive comments of its Governor, Philip Lowe, to do more quantitative easing if needed.
According to Lowe, the bank continues to be ready to bolster bond purchases, while noting the confinements to what the monetary and fiscal policies can achieve.
As a result, the central bank’s support could extend bearish pressures on the Australian dollar. The AUD/JPY pair is at present, exchanging the red close to 70.60, having a low of 70.50 before the press time.
In early Thursday, this currency pair ran close to 71.00 after the drop of the US stock futures, debilitating the strength of growth-linked exchanges like AUD. The RBA missed bond buys for the ninth consecutive day already, yet this fact failed to support a bid under AUD.
Effect of US-China Trade Tensions
Meanwhile, rising tensions on US-China and recharged fears for the second wave of the pandemic seem to weigh over the AUD. President Donald Trump further blamed China for allowing the virus to spread worldwide with its massive misinformation campaign.
Warnings of Medical Organizations and WHO
Nevertheless, rehashed warnings from the World Health Organization (WHO) to another surge in coronavirus cases due to the easing of social distancing measures have affected the optimism created by major countries’ arrangements to revive economies.
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