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Market News AUD/JPY fluctuates below 90.00 as investors anticipate BoJ action

AUD/JPY fluctuates below 90.00 as investors anticipate BoJ action

AUD/JPY is fluctuating below 90.00 as investors anticipate fresh cues from the BoJ's policy decision. Current Governor of the Bank of Japan Haruhiko Kuroda's replacement will be closely observed. This week, Australian employment figures will be closely monitored.

Alina Haynes
2023-01-18
12229

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In the early Asian session, the AUD/JPY pair is fluctuating erratically in a narrow range below the round-level resistance of 90.00. Prior to the introduction of the first monetary policy of CY2023 by the Bank of Japan, the risk barometer displays a sideways auction (BoJ). The AUD/JPY exchange rate is mirroring the footprints of the consolidating AUD/USD, indicating an uncertain risk profile.

 

Investors are anticipating that the Bank of Japan (BoJ) would not alter its policy position on Friday, as doing so would increase financial market risk and undermine attempts to increase inflation. Earlier, the Bank of Japan (BoJ) declared that the central bank will evaluate the negative side effects of the decade-long ultra-loose monetary policy, creating the impression that the central bank is eager to depart the easy policy.

 

Standard Charted analysts anticipate that the Bank of Japan will maintain both the policy balance rate and the 10Y yield target at their current levels of -0.1% and 0%, respectively. At the December meeting, policymakers will evaluate the potential impact of the recent decision to expand the 10-year JGB band to +/-50 bps (from +/-25 bps).

 

Current Governor of the Bank of Japan Haruhiko Kuroda's replacement will be closely observed. Reuters reported on Tuesday that the next BoJ governor nominee is expected to be presented to the Japanese parliament on February 10. C.banking professionals Amamiya, Nakaso, and Yamaguchi are viewed as leading candidates.

 

Thursday is the anticipated day for the release of Australian employment data, which investors are watching. According to the general consensus, the Unemployment Rate is anticipated to remain unchanged at 3.4%. Other than that, the Australian economy must have added 22,500 new positions to the labor market in December, a decrease from the previous increases of 64K.


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