AUD/JPY rises to near 103.50 amid risk-on sentiment

Source Fxstreet
May 15, 2024 08:13
  • AUD/JPY extends its gains due to improved risk appetite on Wednesday.
  • The Australian government aims to address headline inflation and alleviate cost-of-living pressures by allocating billions in funding.
  • Japan’s Finance Minister Shunichi Suzuki will coordinate with the BoJ regarding the FX market to take possible measures if necessary.

AUD/JPY continues its winning streak, hovering around 103.70 during the European session on Wednesday due to the improved risk appetite. The Australian Budget for 2024-25 has returned to a deficit after recording a surplus of $9.3 billion in 2023-24. The Australian government aims to tackle headline inflation and alleviate the cost of living pressures by allocating billions to reduce energy bills and rent, alongside initiatives to lower income taxes.

On Wednesday, the Australian Bureau of Statistics released the Wage Price Index (Q1), an indicator of labor cost inflation. The index showed a 0.8% increase in the first quarter, falling slightly below the anticipated rise of 0.9%. On a year-over-year basis, it saw a 4.1% increase, also slightly lower than the expected 4.2% rise.

On the JPY front, Japan’s Finance Minister Shunichi Suzuki stated on Tuesday that the government is collaborating with the Bank of Japan to ensure alignment in policy objectives regarding foreign exchange. He further noted that they are implementing all feasible measures to closely monitor movements in the Japanese Yen.

Japan's 10-year government bond yield remains steady at around 0.95%, marking its highest level in over six months. This comes as the Bank of Japan (BoJ) reduced the amount of Japanese government bonds it would purchase this week, marking the first such move since lifting its negative interest rate policy in March.

The interest rate differential between Japan and other major economies has encouraged investors to borrow the Japanese Yen (JPY) and invest in higher-yielding currencies, leading to a depreciation of the JPY.

AUD/JPY

Overview
Today last price 103.69
Today Daily Change 0.03
Today Daily Change % 0.03
Today daily open 103.66
 
Trends
Daily SMA20 101.54
Daily SMA50 99.9
Daily SMA100 98.6
Daily SMA200 97.09
 
Levels
Previous Daily High 103.7
Previous Daily Low 103.1
Previous Weekly High 103.12
Previous Weekly Low 100.98
Previous Monthly High 105.04
Previous Monthly Low 97.78
Daily Fibonacci 38.2% 103.47
Daily Fibonacci 61.8% 103.33
Daily Pivot Point S1 103.28
Daily Pivot Point S2 102.89
Daily Pivot Point S3 102.68
Daily Pivot Point R1 103.87
Daily Pivot Point R2 104.08
Daily Pivot Point R3 104.47

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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