AUD/JPY rebounds to near 97.80 on remarks from BoJ Governor Ueda
|- AUD/JPY breaks its four-day losing streak on Friday.
- BoJ Governor Kazuo Ueda expresses skepticism regarding inflation reaching the 2% target.
- S&P/ASX 200 Index tracked gains on Wall Street, supporting the AUD.
AUD/JPY snaps its four-day losing streak, improving to near 97.80 during the European session on Friday. The Australian Dollar (AUD) bolsters by the rise in the S&P/ASX 200 Index and gains on Wall Street, supporting the AUD/JPY cross.
Furthermore, positive data such as the Judo Bank Manufacturing PMI on Friday, which showed a slight improvement in Australia's manufacturing sector, and recent Retail Sales and Private Capital Expenditure data have contributed to the strength of the Aussie Dollar (AUD).
Additionally, the Aussie Dollar (AUD) might have received upward support from the Judo Bank Manufacturing PMI indicated a slight improvement in Australia's manufacturing sector, with the February reading rising to 47.8 from 47.7 in the previous period. Additionally, the recent Retail Sales and Private Capital Expenditure data bolstered the AUD on Thursday.
The Japanese Yen (JPY) could have struggled after the Bank of Japan (BoJ) Governor Kazuo Ueda expressed skepticism regarding the sustainability of Japanese inflation reaching the 2% price growth target. Ueda mentioned that the recent economic downturn represents a rebound from previously robust quarters. Inflationary pressures are subsiding at an accelerated rate, offering some relief. This could prompt the BoJ to delay its plans to tighten monetary policy, which in turn, undermines the Japanese Yen.
BoJ Governor Ueda stated that anticipated wage negotiations are expected to provide additional support. Japan's economic recovery is projected to persist gradually. He emphasizes the importance of evaluating the collective results of wage negotiations and firm hearings before assessing wage data. Expectations are for a rebound in Japan's consumption, particularly with promising outcomes anticipated from spring wage talks.
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