AUD/JPY gains ground near 104.65 in Friday’s Asian session, up 0.47% on the day.
The BoJ decided to maintain the key interest rate at 0% on Friday, as expected by the market.
The RBA is anticipated to keep interest rates unchanged at its June meeting next week.
The AUD/JPY cross gathers strength around 104.65 during the Asian trading hours on Friday. The cross edges higher after the Bank of Japan (BoJ) announced its policy decision. Investors will shift their attention to the Reserve Bank of Australia (RBA) interest rate decision next week.
The Bank of Japan (BoJ) board members decided to keep its policy rate at 0% after concluding its two-day monetary policy review meeting for June. The Japanese central bank held rates for the second straight meeting in June, and the decision matched market expectations. The Japanese Yen (JPY) attracts some sellers after the BoJ decided not to reduce bond purchases. The BoJ policy board member Toyoaki Nakamura dissented to a decision on JGB purchases, saying the central bank should decide to reduce it after reassessing developments in economic activity and prices in the July 2024 outlook report.
On the Aussie front, the expectation that the RBA will maintain current interest rates in June provides some support to the Australian Dollar (AUD). A near 90% majority of analysts predicted interest rates to remain unchanged next quarter, followed by a 25 basis point (bps) cut to 4.10% by year-end, according to Reuters polls. “The risk of a rate hike is very low, but the RBA’s response to high inflation data would be to keep current high rates for longer,” said Nomura senior economist, Andrew Ticehurst.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/aud-jpy-climbs-above-10450-boj-keeps-interest-rate-unchanged-202406140345