Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Popular stocks

Crypto

CFD

Currencies

Support

Gold

Home » Markets News » AUD/JPY Hits Three-Week High as RBA Sticks to Hawkish Stance

AUD/JPY Hits Three-Week High as RBA Sticks to Hawkish Stance

  • September 24, 2024
  • 104

The AUD/JPY currency pair experienced a modest increase during the Asian session on Tuesday, reaching a three-week high in the range of 98.75-98.80. This upward movement occurred following the Reserve Bank of Australia’s (RBA) decision to maintain its benchmark interest rates, signaling continuity in its hawkish monetary policy stance. The market is now anticipating further momentum as prices attempt to surpass the 50-day Simple Moving Average.

As anticipated, the RBA opted to keep the Official Cash Rate steady at 4.35% during its latest policy meeting, marking the seventh consecutive time the rate has remained unchanged. The RBA emphasized the need for a restrictive policy approach until there is strong confidence that inflation is on a sustainable path towards the target range. This decision, in combination with the recent move by the People’s Bank of China to reduce its 14-day repo rate, has been a key support factor for the Australian Dollar.

In addition to these monetary policy developments, a general bullish sentiment prevailing in the global financial markets has negatively impacted the safe-haven Japanese Yen. The JPY has faced additional pressure as market participants expect potential interest rate hikes from the Bank of Japan by the end of the year. Recent economic data indicating a continued increase in Japan’s core inflation over four consecutive months has reinforced these expectations, thereby limiting substantial declines in the Yen.

Despite the upward pressure on the AUD/JPY pair, ongoing geopolitical risks may pose challenges and constrain further gains. These factors create a complex environment for traders, as they navigate both monetary policy dynamics and external uncertainties that could influence market movements in the near term.

This site is registered on wpml.org as a development site.