AUD/JPY: Muted reaction to RBA minutes

• AUD/JPY wavers as RBA  minutes say rates could remain low for years. 
• Minutes also said the policymakers have no appetite to use negative rates. 
• Aussie pairs dropped sharply in the first quarter on RBA's dovish move and coronavirus fears.

The AUD/JPY pair is barely moving in response to the minutes of the Reserve Bank of Australia's (RBA) emergency meeting held on March 18, which said the interest rate is likely to stay at very low levels for years. 

The minutes added that there will be significant job losses in the months ahead and the monetary and fiscal policies will play an important role in battling the coronavirus-led slowdown. 

Even so, the AUD/JPY pair is showing resilience and so far traded in the range of 65.90-65.75. The resilience could be attributed to the statement in the minutes that the policymakers have a low appetite for using negative rates to contain the economic fallout from the virus outbreak.

The RBA reduced the cash rate or the official interest rate to zero on March 18 and launched a yield curve control program. 

The dovish move and the prospects of a coronavirus-led recession in the Australian and global economy led to a sharp fall in the Aussie pairs in the first quarter. The AUD/JPY pair declined by 76.24 to 59.87 in the first three months of the year. 

Technical levels