AUD Surges Past 0.7000 Amidst USD/JPY Collapse and RBA Dovishness

The Australian Dollar (AUD) broke through the psychologically important level of 0.7000 on Thursday, climbing above the 50-day Exponential Moving Average (EMA) to a fresh high for the year.

This move was largely driven by the collapse of USD/JPY, which fell over five yen in minutes amidst speculation of Japanese intervention that Tokyo has not confirmed.

The Reserve Bank of Australia's (RBA) dovish stance following its inflation report on Wednesday also contributed to the AUD's gain, as markets took out the likelihood of a further interest rate hike in August.