AUD/JPY Daily Profits Soar as China Plans Mortgage Rate Cuts
AUD/JPY is on the rise, hitting 95.10 during the European session as Australia’s Consumer Inflation Expectations ease to 4.4% in September. BoJ board member Naoki Tamura also shares insights on future rate hikes.
The Australian Dollar (AUD) is gaining momentum against its counterparts, fueled by positive market sentiment amid expectations of a 25-basis point interest rate cut by the Federal Reserve in September. However, the Aussie faces pressure as China gears up to slash rates on $5 trillion worth of mortgages, potentially impacting trade relations with Australia.
Consumer Inflation Expectations in Australia have dipped slightly from a four-month high in August, signaling the central bank’s efforts to balance inflation and employment concerns. Former RBA Governor Bernie Fraser criticizes the current board for prioritizing inflation over job market stability, advocating for a cash rate reduction to mitigate recession risks.
On the other hand, the Japanese Yen (JPY) remains stable following BoJ’s Naoki Tamura’s comments on gradual rate hikes. Unlike the US and Europe, Japan’s rate adjustments are expected to be more measured, contingent on economic and price conditions.
In conclusion, the evolving dynamics in the AUD/JPY pair and central bank policies signal potential opportunities and risks for investors and traders. Stay informed on market developments to make well-informed financial decisions.