- AUD/JPY gains ground as RBA is expected to maintain higher rates for an extended period.
- The fear of Japan’s intervention could limit the advance of the pair.
- Australian Retail Sales (Q1) declined 0.4% in Q1, swinging from the previous quarter’s 0.4% growth.
AUD/JPY continues its winning streak that began on May 2, trading around 102.50 during the European session on Thursday. However, the fear of intervention from the Japanese authorities is expected to cap the AUD/JPY cross's upward movement.
Japan's 10-year government bond yield has surged to around 0.9%, approaching six-month highs in response to the summary of the Bank of Japan's (BoJ) April policy meeting. During the meeting, the board acknowledged upside risks to inflation and deliberated scenarios that could necessitate further interest rate hikes. This statement underscored BoJ Governor Kazuo Ueda's recent remarks hinting at the possibility of multiple rate increases in the upcoming months.
On the AUD front, Australian Retail Sales (QoQ), which measures the volume of goods sold by retailers in Australia, saw a decline of 0.4% in the first quarter of 2024. This represents a reversal from the 0.4% growth observed in the fourth quarter of 2023.
The Australian Dollar (AUD) may encounter challenges due to the Reserve Bank of Australia (RBA)'s less hawkish stance, particularly following the Monthly Consumer Price Index (YoY) for March, which surged to 3.5%, surpassing the expected reading of 3.4%.
The RBA acknowledged a recent halt in progress toward controlling inflation, maintaining a stance of keeping options open. RBA Governor Michele Bullock emphasized the importance of remaining vigilant regarding inflation risks. Bullock believes that current interest rates are suitably positioned to guide inflation back within its target range of 2-3% by the second half of 2025 and to the midpoint by 2026.
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.
Recommended content
Editors’ Picks
AUD/USD keeps the gradual recovery in place
AUD/USD regained balance and returned to the area beyond the 0.6500 barrier on Thursday, leaving behind the recent pullback. The pair’s rebound came on the back of the strong selling pressure in the US Dollar amid poor data, bets for further Fed rate cuts and trade uncertainty.
EUR/USD has room to advance further
EUR/USD hit fresh tops north of 1.1600 the figure for the first time since October 2021 against the backdrop of an increasingly deteriorated USD outlook. Indeed, the strong selling pressure in the Greenback came in response to another discouraging US inflation results, extra easing of the labour market, and expectations of maybe three rate reductions by the Fed this year.
Gold consolidates its gains near $3,380
Gold maintains its weekly rebound well in place, now trading in the sub-$3,400 region per troy ounce in response to the persistent selling bias in the US Dollar, declining US yields across the curve and growing geopolitical tensions.
Cardano Price Forecast: Whales acquire 310 million ADA amid potential triangle breakout
Cardano (ADA) shows weakness as it reverses from an overhead trendline of a triangle pattern. The altcoin edges lower by over 1% at press time on Thursday, fueling a steeper correction in its Open Interest. Amid weakness, Cardano whales have acquired 310 million ADA tokens so far this month, projecting increased confidence as the triangle pattern nears resolution.
US tariffs here to stay, trade deals ‘largely symbolic’
Despite legal challenges to IEEPA tariffs, US trade policy remains firm. Tariffs on steel and aluminium have doubled, and new sectoral tariffs are expected. Trade deals may emerge, but most will be symbolic. Effective tariff rates will stay high throughout 2025.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.