The post AUD/JPY hovers around 98.00, upside seems possible due to uncertainty over BoJ rate hikes appeared on BitcoinEthereumNews.com.

AUD/JPY gains ground as the uncertainty continues over the timing of interest rate hikes by the Bank of Japan. Japan’s Economy Minister, Ryosei Akazawa, offers no clear indication of when the BoJ may raise interest rates. The AUD weakens as ANZ revises its outlook, now forecasting a 25-basis points rate cut by the RBA in February. AUD/JPY remains steady after its recent losses registered in the previous session, trading around 98.00 during the early European hours on Friday. The AUD/JPY cross may appreciate as the Japanese Yen (JPY) depreciates due to continued uncertainty over the timing of interest rate hikes by the Bank of Japan (BoJ). Japan’s Economy Minister, Ryosei Akazawa, stated on Friday that the country is at a “critical stage” in overcoming the public’s deflationary mindset. Akazawa added, “Once we can officially declare the end of deflation, we will be able to stop using the tools we’ve had in place to combat it.” However, the upside of the AUD/JPY cross could be restrained as the Australian Dollar (AUD) faces challenges as the ANZ is now forecasting a 25 basis points (bps) rate cut by the Reserve Bank of Australia (RBA) in February. The Australian Dollar struggled as the trimmed mean, a closely watched measure of core inflation, fell to an annual 3.2% from 3.5%, edging closer to the Reserve Bank of Australia’s (RBA) target band of 2% to 3%. Markets are currently divided on whether the RBA will act in February, but a quarter-point rate cut in April is fully priced in. Additionally, the Aussie Dollar found no support from China’s latest inflation data, which highlighted increasing deflationary risks. China’s Consumer Price Index (CPI) increased by 0.1% year-over-year in December, slightly lower than the 0.2% rise in November. Meanwhile, monthly inflation remained unchanged at 0% in December. Any…

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Filed under: News - @ January 10, 2025 7:17 am