The AUD/JPY currency pair remains steady despite global trade war concerns and increasing inflationary pressures in Japan. Australia's Consumer Inflation Expectations surged, while Japan's PPI hit a 1-year high, potentially leading to further interest rate hikes by the Bank of Japan.
The AUD/JPY currency pair remained relatively stable on Thursday, hovering around 97.00 during Asian trading hours. This resilience follows three consecutive sessions of gains for the AUD/JPY . The Australian dollar strengthened against its peers after a significant jump in Australia's Consumer Inflation Expectations, reaching 4.6% in February from 4.0% in January. However, the upward momentum for the AUD/JPY cross may be tempered by growing anxieties over a potential global trade war .
On Wednesday, the White House indicated that US President Donald Trump could unveil his retaliatory tariff plan before his meeting with Indian Prime Minister Narendra Modi on Thursday. CNBC reported these developments. Trump has recently made clear his intention to impose tariffs on all nations that impose import duties on the United States. Simultaneously, the Japanese yen received support from stronger-than-expected Producer Price Index (PPI) data released from Japan. This reinforces market expectations of further interest rate increases by the Bank of Japan (BoJ).Japan's PPI surged by 4.2% year-over-year in January 2025, accelerating from a revised 3.9% in the previous month and exceeding market forecasts of 4.0%. This marks the 47th consecutive month of producer inflation and the highest reading since May 2023. On a monthly basis, producer prices climbed by 0.3%, aligning with estimates but easing slightly from December's 0.4% growth. This data underscores the expanding inflationary pressures in Japan, further solidified by recent wage growth figures. This strengthens the case for additional BoJ rate hikes.
AUD/JPY Australian Dollar Japanese Yen Trade War Inflation Producer Price Index Bank Of Japan Interest Rates
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AUD/JPY Holds Ground Amid BoJ Rate Hike and Trump's Tariff StanceThe AUD/JPY currency pair remains positive despite the Bank of Japan's (BoJ) interest rate hike and the potential for the Japanese Yen (JPY) to strengthen. While the BoJ raised its short-term rate target, US President Donald Trump's reluctance to impose tariffs on China could offer support to the Australian Dollar.
Read more »
AUD/JPY Stabilizes as IMF Cautions Japan on Market VolatilityAUD/JPY trimmed daily losses following cautious remarks from the IMF on Friday. The IMF warned Japan to remain vigilant against potential spillover effects from rising global market volatility. The AUD faces challenges due to dovish sentiment surrounding the RBA's policy outlook.
Read more »
AUD/JPY Dips Amidst Global Economic UncertaintyThe AUD/JPY currency pair declined on Monday, influenced by Trump's trade actions, China's economic slowdown, and anticipation of Australian inflation data.
Read more »
AUD/JPY Slides on Trade Uncertainty and China SlowdownThe AUD/JPY currency pair declined on Monday, pressured by uncertainty surrounding US trade policies and a contraction in China's factory activity. Traders await Australian inflation data for further direction.
Read more »
AUD/JPY Price Forecast: Bonces off multi-month low; remains vulnerable near 95.20 areaThe AUD/JPY cross attracts heavy selling at the start of a new week and dives to its lowest level since September 2024, around the 94.70-94.65 region during the Asian session.
Read more »
AUD/JPY Gains Traction Near 96.20 Amid Trade Tariff Delays and RBA Rate Cut SpeculationThe AUD/JPY currency pair saw a modest increase on Tuesday, driven by US President Trump's postponement of trade tariffs on Canada and Mexico. However, the potential for an RBA rate cut in February could limit further gains. Technical indicators suggest a bearish outlook for AUD/JPY, with support levels at 95.05 and 94.00.
Read more »