Ella 
AUD/JPY has attracted some sellers after rising in Tuesday’s Asian session and stopped the overnight rebound from the 103.60-103.55 area or multi-day lows. Spot prices remain on the defensive and are now slightly above the 104.00 round-figure mark after the Reserve Bank of Australia (RBA) policy decision.
As widely expected, the Reserve Bank of Australia decided to keep the official cash rate (OCR) unchanged at a 12-year high of 4.35% for the fifth consecutive meeting in June and continued its hawkish stance. Meanwhile, the central bank is expected to leave the door open for rate hikes this year amid still-firm inflation, which in turn could be a tailwind for the Australian dollar and provide support for the AUD/JPY cross.
Data released by China on Monday showed that the recovery of the world’s second-largest economy is faltering. This cast a shadow on the RBA’s “higher rates, the better” argument and weakened the trend of anti-traditional currencies including the Australian dollar. Meanwhile, the Japanese yen (JPY) benefited from a speech by Bank of Japan (BOJ) Governor Kazuo Ueda, who said the central bank could raise interest rates in July depending on economic data.
In addition to this, speculation that Japanese authorities may intervene to support their currency also further fueled AUD/JPY’s losses. Nevertheless, ahead of a press conference by Reserve Bank of Australia Governor Michele Bullock at 05:30 GMT (13:30 GMT), the risk tone was generally positive, which tends to weaken demand for the safe-haven yen and provide support for the risk-sensitive Australian dollar (AUD), which should help limit any meaningful declines.
