AUD/JPY breaks its four-day losing streak on Friday, edging up to around 97.80 during the European session. The rise is supported by positive sentiment from the S&P/ASX 200 Index and gains on Wall Street, boosting the Australian Dollar (AUD) against the Japanese Yen (JPY).
Recent data, including the Judo Bank Manufacturing PMI, which showed a slight improvement in Australia’s manufacturing sector, has also contributed to the strength of the Aussie Dollar (AUD). Additionally, recent Retail Sales and Private Capital Expenditure data have bolstered the AUD’s performance.
BoJ Governor Kazuo Ueda’s remarks regarding Japanese inflation have influenced the Japanese Yen (JPY). Ueda expressed skepticism about inflation reaching the 2% target, citing the recent economic downturn as a rebound from previously strong quarters. He noted a subsiding of inflationary pressures, suggesting a potential delay in the BoJ’s plans to tighten monetary policy, which undermines the Japanese Yen.
Ueda highlighted the importance of upcoming wage negotiations, expected to provide additional support to Japan’s economic recovery. He emphasized the need to assess the collective results of wage negotiations and firm hearings before evaluating wage data, anticipating a rebound in Japan’s consumption, especially with promising outcomes from spring wage talks.
