AUD/JPY holds gains above 96.00, upside seems limited due to Trump’s tariff threats
The post AUD/JPY holds gains above 96.00, upside seems limited due to Trump’s tariff threats appeared on BitcoinEthereumNews.com.
AUD/JPY may lose ground as risk aversion rises, driven by renewed tariff threats from US President Donald Trump. Trump stated that China would face tariffs, with his administration actively working on their implementation. Tokyo’s Consumer Price Index climbed to 3.4% YoY in January, reaching its highest level since April 2023. AUD/JPY halts its two days of losses, trading around 96.00 during the Asian hours on Friday. However, the upside of the AUD/JPY cross could be restrained as the Australian Dollar (AUD) may struggle amid the increased likelihood of the Reserve Bank of Australia (RBA) rate cut in February. The ASX 30-Day Interbank Cash Rate Futures February 2025 contract indicates a 95% expectation of a 25 basis point reduction in the cash rate to 4.35% at the central bank’s meeting on February 18. Additionally, ANZ, CBA, Westpac, and now National Australia Bank (NAB) all anticipate a 25 basis point (bps) rate cut from the RBA in February. Additionally, the AUD could face challenges amid increased risk aversion US President Donald Trump reiterated his plan on Thursday to impose 25% tariffs on Canada and Mexico but did not specify a timeline for China. However, Trump stated that China would also face tariffs, with his administration actively working on their implementation. Given China’s significant trade relationship with Australia, any indication of a renewed US-China trade war could put downward pressure on the AUD. Trump also announced his threat on X (formerly Twitter) to levy 100% tariffs on BRICS nations if they attempt to introduce an alternative currency to challenge the US dollar in international trade. The Japanese Yen (JPY) may strengthen as expectations for further interest rate hikes by the Bank of Japan (BoJ) grow, capping the upside of the AUD/JPY cross. On Friday, the Statistics Bureau of Japan reported that Tokyo’s headline…
Filed under: News - @ January 31, 2025 5:23 am