AUD/JPY edges higher for the fourth consecutive session on Thursday. The Australian Dollar (AUD) found support following the release of Australian Consumer Price Index (CPI) data on Wednesday, which exceeded expectations. This development hints at a potentially hawkish stance for the Reserve Bank of Australia’s (RBA) monetary policy, bolstering the AUD and subsequently supporting the AUD/JPY pair.
Australia’s 10-year government bond yield has surged above 4.49%, nearing five-month highs, as robust domestic inflation figures have strengthened expectations of the RBA delaying interest rate cuts. Moreover, easing tensions in the Middle East has fostered a positive market sentiment, benefiting risk-sensitive currencies like the AUD.
The Japanese Yen (JPY) continues to depreciate ahead of the upcoming release of the Bank of Japan’s (BoJ) Monetary Policy Statement scheduled for Friday. It’s widely anticipated that the BoJ will abstain from implementing rate hikes in this meeting.
According to reports from Nikkei, the BoJ is likely to deliberate on the “impact of accelerating Yen depreciation,” indicating that the central bank may intervene in the foreign exchange markets if the JPY weakens.
The AUD/JPY trades around 101.10 on Thursday, edging towards the upper boundary of the daily ascending channel after surpassing April’s high of 100.81. Moreover, the 14-day Relative Strength Index (RSI) is trending above the 50-level, backing the bullish sentiment. The immediate resistance is seen at the major level of 101.50.
In case of a downside movement, immediate support for the AUD/JPY pair could be found at the psychological level of 101.00. A breach below this level might lead to a further decline toward the psychological level of 100.00, followed by the support level of 99.65 and the lower boundary of the ascending channel around the level of 99.00.
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Australian Dollar.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | -0.12% | -0.11% | -0.11% | -0.23% | 0.26% | -0.15% | -0.05% | |
EUR | 0.12% | 0.02% | 0.02% | -0.11% | 0.37% | -0.03% | 0.07% | |
GBP | 0.11% | -0.02% | 0.00% | -0.13% | 0.35% | -0.06% | 0.05% | |
CAD | 0.12% | -0.01% | 0.01% | -0.12% | 0.35% | -0.03% | 0.05% | |
AUD | 0.23% | 0.12% | 0.13% | 0.13% | 0.48% | 0.08% | 0.18% | |
JPY | -0.24% | -0.36% | -0.35% | -0.36% | -0.46% | -0.41% | -0.32% | |
NZD | 0.15% | 0.03% | 0.04% | 0.03% | -0.09% | 0.40% | 0.13% | |
CHF | 0.05% | -0.07% | -0.05% | -0.06% | -0.18% | 0.32% | -0.10% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.
Next release: Fri Apr 26, 2024 03:00
Frequency: Irregular
Consensus: 0.1%
Previous: 0%
Source: Bank of Japan