AUD/JPY hovers around 97.50 after paring losses, RBA, BoJ decisions loom – Crypto News – Crypto News
Connect with us
AUD/JPY renews weekly top around 95.00 on China stimulus, cautious optimism ahead of Jackson Hole AUD/JPY renews weekly top around 95.00 on China stimulus, cautious optimism ahead of Jackson Hole

others

AUD/JPY hovers around 97.50 after paring losses, RBA, BoJ decisions loom – Crypto News

Published

1 year ago

on

  • AUD/JPY faces headwinds on market anticipation of a shift in the BoJ’s policy stance.
  • Reuters cited news agency Jiji that the BoJ plans to end its negative interest rate policy.
  • RBA maintains its potential stance for further rate hikes ahead of the policy decision on Tuesday.

AUD/JPY trims some of its daily losses and trades lower around 97.50 during the European hours on Friday. The AUD/JPY cross faces headwinds as the Japanese Yen strengthens, driven by market anticipation of a potential shift in the Bank of Japan’s policy stance, following reports of major Japanese companies fully responding to union demands for wage hikes.

Additionally, Reuters reported on Thursday, citing Japanese news agency Jiji, that the Bank of Japan is planning to discontinue its negative interest rate policy during the March 18-19 meeting. The final decision will depend on the outcome of the preliminary survey regarding this year’s spring wage negotiations by the labor organization Rengo, expected on Friday.

Meanwhile, the AUD/JPY cross gains some upward momentum as the Australian Dollar weakens amid a broad market sell-off, particularly evident in the lower S&P/ASX 200 Index. Australian equities mirror losses seen on Wall Street, with significant declines observed in banking and iron ore mining sectors.

Despite these challenges, the AUD/JPY cross may find support as the Reserve Bank of Australia (RBA) maintains its potential stance for further rate hikes. Analysts, according to a Reuters poll conducted before the RBA meeting, anticipate the central bank to keep its official cash rate unchanged at 4.35% for a third consecutive meeting, with no expected adjustments until at least the end of September.

Looking ahead, both the RBA and the Bank of Japan are scheduled to announce their policy decisions on Tuesday, adding further anticipation to the market regarding monetary policy directions.

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending