AUD/GBP Exchange rate

The USD/JPY pair posts modest gains near 158.45 during the early Asian session on Friday. The Japanese Yen softens against the US Dollar following the release of Japanese inflation data. All eyes will be on the Bank of Japan interest rate decision and the press conference later on Friday. 

AUD/USD holds steady below mid-0.6800s during the Asian session on Friday, consolidating its weekly gains to the highest level since October 2024, set the previous day, before the next leg up. The upbeat Australian employment data released on Thursday reaffirmed expectations for tighter monetary policy from the RBA and underpins the Aussie amid a positive risk tone. Apart from this, a bearish US Dollar backs the case for a further appreciation of the currency pair.

Gold extends its record-setting rally for the fifth consecutive day on Friday, as persistent geopolitical uncertainties continue to drive safe-haven flows. Meanwhile, expectations for further policy easing by the Federal Reserve contribute to the de-dollarization trend and further underpin the non-yielding bullion, which remains on track to register gains for the third successive week and appears unaffected by extremely overbought conditions.

The Bank of Japan is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting next Friday. The Japanese central bank hiked rates to its highest level in three decades in December, and will likely stand pat on Friday to better assess the economic consequences of previous rate hikes.

What began as a sharp escalation risk quickly turned into a de-escalation signal. Earlier this week, markets briefly priced in escalation risk after Donald J. Trump proposed a 10% tariff hike on eight NATO nations amid the Greenland dispute.