The AUDJPY exchange rate will look to recent data for support after the Japanese yen posted further gains.
AUDJPY – Daily Chart
The price of the AUDJPY has bounced near the 93.86 support level which goes back to mid-2024. The coming data will have to bring further buyers to hold that level after BOJ rate hike talk has boosted the yen.
The Aussie dollar got a boost from the latest Reserve Bank meeting minutes which did not highlight further imminent cuts. In the minutes, members said the recent rate cut did not “commit them to further rate cuts”. The RBA remains concerned about inflation even though it has dropped to 2.4% but there is also the threat of tariffs on global trade.
Governor Bullock has said that the RBA is watching the labor market, which has been resilient and not supportive of further rate cuts.
Wednesday morning was set to see the release of the important GDP growth number for the Australian economy, with a robust number possibly adding to yesterday’s strength.
Bank of Japan governor Ueda was also set to release a statement around the same time.
Traders will keep an eye on Chinese services PMI at 9:45am, with the Trump speech to Congress at 10am in a busy morning for markets. Tomorrow will bring Australian trade balance figures at 8:30am HKT.
