AUD/JPY Soars To Around 93.00 As a Result Of Hawkish RBA Minutes
AUD/JPY has risen toward 93.00 as RBA minutes have cleared that more rate hikes are necessary. The RBA members also contemplated an OCR rise of 50 basis points. BoJ Governor Kuroda anticipates a rise in salaries due to labor demand and inflation.

After seeing a hawkish posture in the minutes provided by the Reserve Bank of Australia, the AUD/JPY pair has risen to near 93.00 during the Tokyo session (RBA). The RBA minutes make it abundantly clear that higher interest rates are required due to the fact that strong consumer demand prevents Australian inflation from falling from its peak.
Considering the continuance of inflation, RBA members also contemplated a 50 basis point (bps) increase in interest rates, according to the minutes. Members of the RBA also noted that the unemployment rate is at its lowest level in the past half-century and that the number of job openings is extraordinarily high, which is a source of satisfaction for consumers that are injecting surplus income into the economy.
Aside from that, the Australian economy benefited from greater terms of trade and would gain more from China's openness than a number of other nations. The Chinese government's easing of pandemic regulations has increased trade opportunities for the Australian economy.
Philip Lowe, governor of the Reserve Bank of Australia, expects the cash rate to rise to 3.75 percent over time, with headline inflation falling to 4.75 percent by the end of 2023 and returning to about 3 percent by mid-2025.
S&P Global previously released optimistic preliminary Australian PMI (Feb) numbers. The Manufacturing PMI reached 50.1, exceeding both the consensus estimate of 49.9 and the previous reading of 50.0. The Services PMI increased to 49.2 from 48.4 (estimated) and 48.6 (previously released).
On the Japanese Yen front, Bank of Japan (BoJ) Governor Haruhiko Kuroda noted, "Due to labor demand and inflation, wages are anticipated to increase. The Japanese Yen has not responded significantly to the preliminary Jibun Bank PMI (Feb) data, which was mixed. The Services PMI has reached 53.6, exceeding both the consensus estimate of 51.5 and the previous reading of 51.1. While the Manufacturing PMI has decreased to 47.4 compared to expectations and the previous reading of 48.9, it remains over the neutral mark of 50.
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