AUD/JPY Stays Strong Near 97.20 Ahead of Key Data
The AUD/JPY pair is trading strong around the 97.15–97.20 level, holding near its highest point since January. This rise continues after it touched a multi-month high earlier this week.
One of the main reasons for the Japanese Yen’s weakness is political uncertainty in Japan. With the upper-house elections coming up on July 20, investors are worried the ruling party might lose some control. This is keeping pressure on the Yen.
At the same time, the Bank of Japan (BoJ) is not showing any clear signs of changing interest rates soon. Japan’s economy is still struggling with slow growth, weak wages, and low inflation. These factors reduce the chances of any rate hike by the BoJ, which weakens the Yen further.
On the other hand, the Australian Dollar is getting support after the Reserve Bank of Australia (RBA) decided to keep interest rates steady. This move was unexpected and boosted the Aussie Dollar in Forex markets.
Now, all eyes are on the Australian employment report due Thursday. This data could push AUD/JPY higher if the numbers are strong. Also, Japan’s inflation (CPI) data on Friday will be closely watched by traders.
Impact :
AUD/JPY might remain strong if Australia’s job numbers beat forecasts. However, Japan’s CPI release could shift the trend if inflation rises more than expected.