AUD/JPY tumbles to near 98.50 as RBA cautious over future rate cuts
The post AUD/JPY tumbles to near 98.50 as RBA cautious over future rate cuts appeared on BitcoinEthereumNews.com.
The AUD/JPY cross slumps to near 98.65 during the Asian trading hours on Tuesday. Some verbal intervention from Japanese authorities provides some support for the Japanese Yen (JPY) against the Australian Dollar (AUD). Traders will take more cues from the Reserve Bank of Australia’s (RBA) Governor Michele Bullock speech later on Wednesday. The minutes of the RBA’s September meeting, released on Tuesday, showed that the central bank remains cautious over future interest rate cuts amid sticky local inflation. The board members noted that the current policy is likely still a little restrictive. The RBA reiterated its data-dependent stance on future reduction, noting that it was also waiting to see the full effects of its monetary easing to be reflected in the economy. The AUD edges slightly higher in an immediate reaction to the RBA Meeting Minutes but the cautious mood in the market cap the upside for the pair. Traders brace for China’s September Consumer Price Index (CPI) and Producer Price Index (PPI) reports for fresh impetus. Any signs of softer inflation in the Chinese economy could drag the China-proxy Aussie lower, as China is a major trading partner to Australia. On the other hand, the expectations that political chaos in Japan could delay the Bank of Japan’s (BoJ) rate hike plans might weigh on the JPY and create a tailwind for the cross. Traders continue to assess the path ahead for Japan’s new Liberal Democratic Party leader, Sanae Takaichi, after Komeito quit the ruling coalition on Friday. The downside for the JPY might be limited due to verbal intervention from Japanese officials. Japanese Finance Minister Katsunobu Kato said on Tuesday that he has recently seen one-sided and rapid moves in the foreign exchange. Kato added that it’s important for currencies to move in a stable manner reflecting fundamentals. Australian Dollar FAQs One…
