- The Aud/JPY recovers positive traction and reverts part of the strong losses of Friday to a minimum of several weeks.
- The decrease in the probabilities of an immediate rise in the Boj weakens to the JPY and offers support to the crossing.
- A modest strength of the AUs contributes to the movement, although a combination of factors could limit profits.
The Aud/JPY crossing attracts some buyers during Monday’s Asian session and reverses part of Friday’s fall to the 95.00 area, or a minimum of almost four weeks. Cash prices rise to a new daily peak, around the 95.80 region in the last hour, and receive a combination of factors.
The governor of the Bank of Japan (BOJ), Kazuo Ueda, minimized the risks of inflation and showed no real intention to raise the rates in the short term last week. To this is added the internal political uncertainty that could further complicate the path of normalization of the Boj’s policy, which is considered a key factor behind the low performance of the Japanese Yen (JPY). In addition, some additional purchase around the Australian dollar (AUD) acts as a tail wind for the Aud/JPY crossing.
Meanwhile, the BOJ rises its inflation forecasts last Thursday and offered a less gloomy perspective on the economy, keeping the hopes of an imminent rise of interest rates later this year. This, together with a weaker tone in the variable income markets, could offer some support to the safe refuge JPY. The Aud, on the other hand, could have difficulty attracting significant buyers amid the bets that the Australian Reserve Bank (RBA) would reducing indebtedness costs again.
In fact, the operators have become increasingly confident that the RBA will cut interest rates in August before relaxation signs in labor market conditions. This, in turn, makes it prudent to expect a strong additional purchase before positioning itself for the resumption of the recent well -established bullish trend of the Aud/JPy pair observed during the last month approximately. The operators now expect the publication of the minutes of the monetary policy meeting on Tuesday to obtain a new impulse.
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency in front of the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.06% | 0.38% | -0.05% | -0.07% | -0.06% | 0.02% | |
| EUR | -0.17% | -0.08% | 0.21% | -0.23% | -0.39% | -0.24% | -0.16% | |
| GBP | -0.06% | 0.08% | 0.31% | -0.15% | -0.31% | -0.17% | -0.08% | |
| JPY | -0.38% | -0.21% | -0.31% | -0.42% | -0.60% | -0.45% | -0.18% | |
| CAD | 0.05% | 0.23% | 0.15% | 0.42% | -0.18% | -0.01% | 0.06% | |
| Aud | 0.07% | 0.39% | 0.31% | 0.60% | 0.18% | 0.13% | 0.23% | |
| NZD | 0.06% | 0.24% | 0.17% | 0.45% | 0.01% | -0.13% | 0.08% | |
| CHF | -0.02% | 0.16% | 0.08% | 0.18% | -0.06% | -0.23% | -0.08% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
