AUD/JPY edges higher to near 96.70 after hawkish remarks by RBA Bullock

AUD/JPY gained ground on RBA’s hawkish stance on monetary policy.
RBA Governor Michele Bullock did not rule anything in or out regarding policy decisions.
Japan's Foreign Reserves decreased to $1,291.8 billion in January from the previous figure of $1,294.6 billion.

Akhtar Faruqui FXStreet

AUD/JPY trends upwards for the second consecutive day on Wednesday, trading around 96.70 during the Asian session. The hawkish remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock on Tuesday have bolstered confidence in the Australian Dollar (AUD), contributing to its strength against the Japanese Yen (JPY).

The Reserve Bank of Australia (RBA) maintained its Official Cash Rate (OCR) at 4.35% on Tuesday, a move that was widely expected. RBA Governor Michele Bullock refrained from making any definitive statements about future policy decisions. She stressed the importance of balanced risks and highlighted the bank's ongoing efforts to gather data confirming a return of inflation to target levels. Governor Bullock mentioned a forecast of 2.8% inflation for the year 2025.

On the other side, Wednesday's release of Japan's Foreign Reserves report indicated a slight decrease, with the figure standing at $1,291.8 billion in January compared to December's figure of $1,294.6 billion. Additionally, on Tuesday, Labor Cash Earnings (Year-over-Year) showed improvement, registering at 1.0% in December compared to the previous reading of 0.7%, albeit falling short of the expected 1.3%.

The Japanese Yen receives support from expectations that another significant pay hike this year will contribute to sustained and stable inflation. This optimism is fueling hopes that the Bank of Japan (BoJ) may gradually move away from its ultra-dovish policy stance. Additionally, the BoJ has hinted at the possibility of ending its negative interest rate cycle, suggesting a potential shift in monetary policy direction.

AUD/JPY: additional important levels

Overview
Today last price	96.66
Today Daily Change	0.20
Today Daily Change %	0.21
Today daily open	96.46

Trends
Daily SMA20	97.08
Daily SMA50	96.72
Daily SMA100	96.37
Daily SMA200	95.13

Levels
Previous Daily High	96.8
Previous Daily Low	96.28
Previous Weekly High	97.7
Previous Weekly Low	95.5
Previous Monthly High	97.88
Previous Monthly Low	95.84
Daily Fibonacci 38.2%	96.6
Daily Fibonacci 61.8%	96.48
Daily Pivot Point S1	96.22
Daily Pivot Point S2	95.98
Daily Pivot Point S3	95.69
Daily Pivot Point R1	96.75
Daily Pivot Point R2	97.04
Daily Pivot Point R3	97.28

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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