AUD/JPY refreshes daily low near 79.00 ahead of BOJ

AUD/JPY refreshes daily lows in Wednesday’s Asian session. The pair retreated toward 79.00 levels as fears persisted over China’s Evergrnade default risk despite assurance from the International Monetary Fund (IMF).

As of writing, the AUD/JPY is trading at 79.02, up 0.02% for the day.

The pair extended its decline following the Reserve Bank of Australia’s (RBA) September Minutes of Meeting. The Central bank said the outbreak of the Delta variant had distracted the economic recovery more than estimated in the earlier month. RBA Governor Philip Lowe downplayed higher interest rate expectations before 2024.

In addition to that, New South Wales recorded 1,022 fresh new cases on Tuesday along with resurgence of coronavirus infections in Victoria. Meanwhile, construction sites in Melbourne remained closed for two weeks after a violent anti-vaccine protest in the city.

RBA Deputy Governor Guy Debelle offered nothing new on the monetary policy stance while addressing China’s  property giant Evergrande issue.

Furthermore, Australia’s Westpac leading indicator declined 0.30% in August on a yearly basis, which kept the pressure on the aussie.

It is worth noting that S&P 500 futures are trading at 4,328, down 0.35% for the day.

The Japanese yen gains on risk aversion among investors despite the comments from the IMF on China. IMF Chief Economist Gita Gopinath said China has tools and policy space to prevent Evergrande situation from turning into a systemic crisis.

As for now, traders turn their attention to the Bank of Japan (BOJ) interest rate decision and US FOMC meeting to gauge the market sentiment.

AUD/JPY additional levels