AUD/JPY extends its gains after the Aussie economic data, trades near 97.10 – Crypto News – Crypto News
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AUD/JPY extends its gains after the Aussie economic data, trades near 97.10 – Crypto News

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  • AUD/JPY moves above a key level of 97.00 after the Australian economic data.
  • Aussie Consumer Inflation Expectations and Unemployment Rate remained consistent at 4.5% and 3.9%, respectively.
  • Japanese Yen faces challenges as BoJ is expected to maintain an ultra-dovish stance.

AUD/JPY extends its gains for the second straight session, improving to near 97.10 during the Asian trading hours on Thursday. The Australian Dollar (AUD) gains ground against the Japanese Yen (JPY) after the release of the economic data from Australia on Thursday.

Consumer Inflation Expectations remained unchanged at 4.5% in January, and the seasonally adjusted Unemployment Rate held steady at 3.9%, aligning with the expectations for December. Despite these stable indicators, the Employment Change data unveiled a decline. The number of employed individuals decreased by 65.1K, contrasting with the anticipated increase of 17.6K.

However, the modest economic data could act as a deterrent for the Reserve Bank of Australia (RBA) to implement any changes in monetary policy during the upcoming meeting, potentially limiting the upward momentum of the AUD/JPY pair. The RBA is projected to maintain a cautious stance, with expectations of only two rate cuts for the rest of the year.

As of now, the current cash rate stands at 4.34%, following a 25 basis points (bps) hike at the Reserve Bank of Australia (RBA) November meeting. Despite the increase,

On the Japanese side, the recent decline in inflation rates in Tokyo and the release of weaker wage data last week have reinforced market expectations that the Bank of Japan (BoJ) will maintain its ultra-dovish stance. This, in turn, is perceived as a significant factor undermining the strength of the Japanese Yen (JPY) and facilitating an upward movement in the AUD/JPY pair.

 

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