AUD/JPY Near 98.00 After RBA Keeps Rates at 3.60%
The AUD/JPY pair went up close to 98.00 after the Reserve Bank of Australia (RBA) decided to keep its main interest rate at 3.60%. This move was expected by most traders.
The RBA also said that inflation in the third quarter may be higher than they thought earlier. Recent data showed that Australia’s Consumer Price Index (CPI) grew by 3.0% in August compared to last year, which was a little above the forecast. Because of this, the bank warned that inflation risks are still there.
In Japan, the Bank of Japan (BoJ) made it clear that there is no hurry to raise interest rates. The Japanese yen has been weak, but it is still holding better against some other currencies because the BoJ is being careful.
For the Australian dollar, the next key update will be the August Trade Balance data. This report will show how much Australia exported and imported, and it could affect the AUD in the coming days.
Impact:
The AUD/JPY may rise more if Australian inflation and trade numbers stay strong. The yen could remain weak unless the BoJ changes its policy.