AUDJPY turns volatile above 93.00 ahead of RBA policy minutes and Japan’s GDP
- AUDJPY is gyrating in a wide range above 93.00 as the focus has shifted to the RBA minutes release.
- As per the consensus, the Australian economy has added 15k jobs in the labor market.
- A slowdown in Japan’s GDP data could pause the Japanese yen’s relief rally.
The AUDJPY pair is displaying wild moves above the crucial support of 93.00 in the Tokyo session. The asset has been declining consecutively for the past four trading sessions and expectations for further volatility still exist amid an overall recovery in the Japanese yen.
Apart from that, anxiety ahead of the release of the monetary policy minutes from the Reserve Bank of Australia (RBA) has also brought volatility in the Aussie dollar. This will explain the announcement of the 25 basis points (bps) rate hike in November. Investors should be aware that RBA Governor Philip Lowe continued the 25 bps rate hike regime this month despite a historic surge in third-quarter inflation data. The RBA didn’t return to the prior 50 bps rate hike structure and continued hiking rates further by a lower rate.
To keep the economic prospects stable along with the agenda of bringing price stability, the RBA seems to prefer to go small at recurring intervals rather than going all in at a single bet.
This week, the antipodean will also release the employment data due on Thursday. The Employment Change is seen higher at 15k vs. the prior release of 0.9k. While the Unemployment Rate is seen stable at 3.5%.
On the Tokyo front, Tuesday’s Gross Domestic Product (GDP) data will remain in focus. The economic data is seen lower at 0.3% vs. the prior release of 0.9% on a quarterly basis, while the annualized figure may decline to 1.1% from the former release of 3.5%. The Bank of Japan (BOJ) has been citing warning signals of a slowdown due to external economic shocks and the chances of the inflation rate returning below 2%.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
