The AUD/JPY cross continues its downward trend for the third consecutive day, reaching a three-and-half-week low during the Asian session. This decline is primarily due to hawkish comments made by RBA Governor Michele Bullock, which supported the Australian Dollar. However, the Japanese Yen remains strong on bets for another BoJ rate hike in 2024, limiting any significant gains for the cross.
Despite Bullock’s optimistic remarks about inflation and interest rates, the Australian Trade Balance data showed a rise in surplus but with a decrease in imports and an increase in exports. On the other hand, Japan’s real wages rose for the second month in July, reinforcing expectations for a BoJ rate hike in 2024. BoJ Board Member Hajime Takata emphasized the need for adjusting monetary conditions based on economic indicators.
The overall cautious market sentiment favors the JPY’s safe-haven status over the AUD, indicating a downward trajectory for the AUD/JPY cross. This suggests that the recent recovery from the one-year low may have reached its peak. Traders should monitor further developments in central bank policies and economic indicators to make informed investment decisions.
Economic Indicator
RBA Governor Michele Bullock’s speeches are crucial in understanding the Reserve Bank of Australia’s monetary policy decisions. Her recent comments have influenced the AUD/JPY cross and may continue to impact currency movements in the near term.
Last release: Thu Sep 05, 2024 03:05
Frequency: Irregular
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Source: Reserve Bank of Australia