AUD/JPY peeps above 75.00 ahead of RBA

• AUD/JPY rises above 75 as US stock futures jump 0.30%. 
• Stocks remain bid despite the rise in the coronavirus cases in the US. 
• RBA is likely to keep key policy tools unchanged and may talk down the Aussie dollar. 

AUD/JPY is flashing green for the fourth straight trading day with the US stock futures pointing to continued risk-on action in the equity markets. 

At press time, the pair is trading at 75.05, representing 0.27% gains on the day. Meanwhile, the futures tied to the S&P 500 are reporting a 0.30% gain and keeping the anti-risk Japanese yen under pressure. 

The S&P 500 index closed higher for the fifth straight day on Monday despite a worrying rise in the number of coronavirus cases in the US and other parts of the world. As a result, JPY took a beating across the board. 

Focus on RBA

The Reserve Bank of Australia (RBA) is expected to keep interest rates unchanged at the record low of 0.25% and retain the three-year bond yield target of 0.25%. The rate decision and policy statement will be published at 04:30 GMT. 

According to analysts, the central bank has little reason to make changes to key policy tools. That said, the Aussie dollar has appreciated by 1500 pips over the past 3.5-months. As such, the RBA could try to talk down the exchange rate. 

The focus would also be on the governor’s assessment of the recent flare-up in coronavirus cases in Victoria and the resulting impact on the economic recovery. 

Technical levels