AUD/JPY weakens below 104.50 as BoJ's Adachi emphasizes reducing bond buying

Source Fxstreet
May 29, 2024 10:52
  • AUD/JPY lost ground as Adachi highlighted the need to reduce bond-buying in stages.
  • The risk aversion sentiment contributed to the downside of the Australian Dollar.
  • Australia’s Monthly Consumer Price Index rose 3.6% YoY in April, against the expected decline to 3.4% from 3.5% prior.

AUD/JPY halted its three-day winning streak, trading around 104.30 during the European session on Wednesday. The Japanese Yen (JPY) appreciated against the Australian Dollar (AUD) after Bank of Japan (BoJ) board member Seiji Adachi emphasized reducing bond buying in stages so that long-term yields could better serve as a market signal. However, Adachi did not provide a specific timeline for this adjustment, per Reuters

Regarding the interest rate outlook, Adachi commented that it would be appropriate to increase interest rates at a slow pace if underlying inflation steadily moves toward the 2% target. Earlier in the day, He also highlighted the potential consequences of frequent changes in monetary policy aimed at stabilizing foreign exchange movements. He warned that significant fluctuations in interest rates could disrupt household and corporate investment.

The Australian Dollar (AUD) moves back and forth during the Asian session after the release of the higher-than-expected consumer inflation data. Australia’s Monthly Consumer Price Index rose 3.6% year-over-year in April, surpassing the expected reading of 3.4% and the previous reading of 3.5%.

The stronger consumer inflation data could prompt the Reserve Bank of Australia (RBA) to consider another rate hike. The minutes from the RBA's May policy meeting suggested that the central bank had contemplated a potential interest rate increase.

AUD/JPY

Overview
Today last price 104.33
Today Daily Change -0.19
Today Daily Change % -0.18
Today daily open 104.52
 
Trends
Daily SMA20 103.12
Daily SMA50 101.15
Daily SMA100 99.35
Daily SMA200 97.59
 
Levels
Previous Daily High 104.62
Previous Daily Low 104.35
Previous Weekly High 104.56
Previous Weekly Low 103.48
Previous Monthly High 105.04
Previous Monthly Low 97.78
Daily Fibonacci 38.2% 104.52
Daily Fibonacci 61.8% 104.45
Daily Pivot Point S1 104.37
Daily Pivot Point S2 104.22
Daily Pivot Point S3 104.1
Daily Pivot Point R1 104.65
Daily Pivot Point R2 104.78
Daily Pivot Point R3 104.93

 

 

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