The Australian central bank delivered its 25 basis point interest rate cut from 1.00% to 0.75%. This was expected by market participants following the release of minutes from the previous RBA meeting. The announcement was preceded by a surprise increase in the Australian manufacturing sector as confirmed by two different reports. The housing market remains under pressure which could impact the consumer moving forward. The AUDJPY started to contract, will this move extend further to the downside? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair.

The Tankan Survey for the third-quarter pointed towards more weakness in the quarter with a depressed outlook for the fourth-quarter. The labor market remains tight and vehicle sales surged. This has helped the Japanese Yen to advance further against the Australian Dollar. Safe haven demand into the Japanese currency is expected to rise which will further increase selling pressure on the AUDJPY. How much downside should forex traders expect? Today’s fundamental analysis will take a look at price action in both directions.