AUD/JPY holds positive ground as RBA leaves interest rate unchanged at 4.35%

• AUD/JPY trades in positive territory in Tuesday’s Asian session, up 0.22% on the day. 
• The RBA decided to keep the OCR on hold at 4.35% at its November meeting on Tuesday. 
• The US presidential election uncertainty might cap the upside for the cross. 

The AUD/JPY cross gains traction to near 100.40 during the Asian trading hours on Tuesday. The Australian Dollar (AUD) edges higher after the Reserve Bank of Australia (RBA) interest rate decision. 

The RBA kept the Official Cash Rate (OCR) on hold at 4.35% following the conclusion of its November policy meeting. The decision came in line with market expectations. The Aussie remains firm following the RBA rate decision. 

According to the RBA Monetary Policy Statement, the board members will continue to rely upon the upcoming data and the evolving assessment of risks. The policymaker further stated that the monetary policy will need to be sufficiently restrictive until the central bank is confident that inflation is moving sustainably toward the target range. 

Traders will take more cues from the RBA’s updated economic forecasts and Governor Michele Bullock’s press conference, which might offer some insight into the interest rate outlook. 

On the other hand, the uncertainty surrounding the US presidential election could boost the safe-haven currency like the Japanese Yen (JPY) and cap the upside for the cross. Additionally, less dovish remarks from BoJ Governor Kazuo Ueda could underpin the JPY in the near term. "Many market players had bet that the next rate hike will come in the January-March quarter next year. But he sounded as if he left open the chance of a December hike," said Hiroshi Watanabe, senior economist at Sony Financial Group.