November 20, 2024
- AUD/JPY gained ground on uncertainty surrounding the BoJ policy outlook.
- AUD praised for RBA meeting minutes stressing importance of maintaining an accommodative monetary policy.
- Risk-sensitive AUDs may face challenges due to the escalating Russia-Ukraine conflict.
AUD/JPY extended its winning streak for a third consecutive session, trading around 101.20 during Asian hours on Wednesday. This uptick in the AUD/JPY cross has been attributed to a tepid Japanese yen (JPY) amid uncertainty surrounding the timing of the next interest rate hike by the Bank of Japan (BoJ).
On Tuesday, Japanese Finance Minister Katsunobu Kato stressed the need for stable currency behavior in line with economic fundamentals, expressing increased caution over foreign exchange movements. Kato reiterated that the ministry will take necessary measures for additional management Forex fluctuating
The Australian dollar (AUD) remains steady following the interest rate decision by Australia’s close trading partner China. The People’s Bank of China (PBoC) Monetary Policy Committee (MPC) decided to keep the benchmark interest rate unchanged at 3.1% for November.
Australian Treasurer Jim Chalmers said that “falling iron ore prices and a softening labor market have weighed on government revenues.” Following his ministerial statement on the economy on Wednesday. Chalmers outlined a tough fiscal year for Australia perspectiveMajor trading partners cited China’s weakness and labor market slowdown as contributing factors.
Upside in the AUD/JPY cross may be limited as the risk-sensitive AUD faces challenges as Ukraine deploys US-supplied ATACMS missiles to strike Russian territory for the first time, signaling a significant escalation on the 1,000th day of the conflict. . However, market concerns eased somewhat after Russian Foreign Minister Sergei Lavrov assured that the government would take all necessary measures to avoid nuclear war.
