AUD/JPY Holds Steady Around 100.50 as RBA Maintains Hawkish Stance
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AUD/JPY remains steady at 100.50, supported by expectations that the Reserve Bank of Australia (RBA) will hold its cash rate at 4.35% in Tuesday’s policy meeting. A hawkish RBA stance, rising inflation data, and potential Chinese stimulus are bolstering the Australian Dollar, while political uncertainty weighs on the Japanese Yen. The currency pair’s stability suggests potential for movement post-RBA decision.
AUD/JPY: Australian Dollar Strength Amid RBA and Economic Indicators
AUD/JPY has held its ground, hovering around 100.50, bolstered by the RBA’s likely hawkish position and supportive economic data. The RBA is expected to keep the cash rate at 4.35%, as underlying inflation remains high. The October Inflation Gauge from the Melbourne Institute saw a 0.3% monthly rise, the highest since July, further fueling a positive outlook for the Australian Dollar.
Chinese Economic Stimulus Could Bolster AUD Further
The upcoming National People’s Congress Standing Committee meeting in China, anticipated to introduce stimulus measures to counter economic slowdown, could indirectly support the AUD. China is Australia’s largest trading partner, and additional economic support from Beijing could translate into sustained AUD strength in the near term.
JPY Outlook: Weakness Amid Rising Political and Economic Uncertainty
The Japanese Yen faces potential depreciation, influenced by political developments and the Bank of Japan’s dovish stance. The recent parliamentary win by Japan's LDP coalition has brought new questions around the BOJ’s policy direction, which remained unchanged at 0.25%. With Japanese markets closed for the Sports Day holiday, liquidity for the Yen is limited, adding to its vulnerability.
Key Levels to Watch for AUD/JPY
AUD/JPY remains poised for movement as the RBA decision approaches. Traders should monitor the 100.50 level closely, as a hawkish RBA statement could further strengthen AUD, potentially pushing the pair higher. However, if RBA signals a shift in inflation outlook, AUD/JPY could see downside pressure.
AUD/JPY: Australian Dollar Strength Amid RBA and Economic Indicators
AUD/JPY has held its ground, hovering around 100.50, bolstered by the RBA’s likely hawkish position and supportive economic data. The RBA is expected to keep the cash rate at 4.35%, as underlying inflation remains high. The October Inflation Gauge from the Melbourne Institute saw a 0.3% monthly rise, the highest since July, further fueling a positive outlook for the Australian Dollar.
Chinese Economic Stimulus Could Bolster AUD Further
The upcoming National People’s Congress Standing Committee meeting in China, anticipated to introduce stimulus measures to counter economic slowdown, could indirectly support the AUD. China is Australia’s largest trading partner, and additional economic support from Beijing could translate into sustained AUD strength in the near term.
JPY Outlook: Weakness Amid Rising Political and Economic Uncertainty
The Japanese Yen faces potential depreciation, influenced by political developments and the Bank of Japan’s dovish stance. The recent parliamentary win by Japan's LDP coalition has brought new questions around the BOJ’s policy direction, which remained unchanged at 0.25%. With Japanese markets closed for the Sports Day holiday, liquidity for the Yen is limited, adding to its vulnerability.
Key Levels to Watch for AUD/JPY
AUD/JPY remains poised for movement as the RBA decision approaches. Traders should monitor the 100.50 level closely, as a hawkish RBA statement could further strengthen AUD, potentially pushing the pair higher. However, if RBA signals a shift in inflation outlook, AUD/JPY could see downside pressure.