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AUD / JPY Falls Below 91.50 Despite RBA Rate Hike Possibilities
Despite rising hawkish RBA wagers, the AUD/JPY exchange rate has moved below 91.50. In its fight against persistent inflation, the RBA is anticipated to proclaim a fifth consecutive 25-bps rate hike. This week, the Japanese Yen will focus on the fourth-quarter GDP figures.
In the early Asian session, the AUD / JPY pair has moved its auction below 91.50. The risk barometer is confronting offers while attempting a recovery and is anticipated to continue its descent to around 91.30. Despite rising odds of a hawkish monetary policy from the Reserve Bank of Australia, the cross is not exhibiting any signs of recovery (RBA).
The Consumer Price Index (CPI) for January showed a significant deceleration, but not enough to prompt the RBA to suspend its policy tightening.
The fourth quarter gross domestic product grew by 0.5%, which was less than the consensus estimate of 0.8% and the previous release of 0.7%.
Analysts at SocGen believe that "recent signals in the macroeconomic data, such as the decline in inflation, the rebound in the unemployment rate, relatively tepid wage growth, and the affirmation of a downturn in consumption, all support a 25 basis point increase in March." Despite the financial market's more hawkish outlook on US Fed policy, they also support our baseline scenario of a terminal policy rate of 3.85%.
, The annualized GDP data indicates that the Japanese economy has expanded by 0.8%, which is 0.8% more than the previous expansion of 0.6%. While the quarterly data is anticipated to show a consistent growth of 0.2%, it is anticipated that the annual growth rate will be 0.4%.
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