AUD/JPY clings to hawkish RBA-inspired gains, struggles to build on strength beyond 96.00
08.08.2024, 04:35

AUD/JPY clings to hawkish RBA-inspired gains, struggles to build on strength beyond 96.00

  • AUD/JPY turns positive for the third straight day, albeit lacks strong follow-through buying.
  • RBA Governor Michele Bullock's hawkish remarks boost the AUD and remain supportive.
  • BoJ rate hike bets, geopolitical risks, China’s economic woes benefit the JPY and cap gains.

The AUD/JPY cross attracts some dip-buying near the 94.70 region during the Asian session on Thursday and stalls its modest retracement slide from the weekly high touched the previous day. Spot prices, however, struggle to capitalize on the momentum and currently trade with only modest intraday gains, around the 96.00 round-figure mark.

The Australian Dollar (AUD) strengthens in reaction to the Reserve Bank Australia (RBA) Governor Michele Bullock's hawkish remarks, which turned out to be a key factor that assisted the AUD/JPY cross to gain positive traction for the third straight day. Responding to the Q&A session earlier today, Bullock emphasized the need to stay vigilant about inflation risks and indicated a willingness to hike rates if necessary. Apart from this, signs of stability in the equity markets lend additional support to the risk-sensitive Aussie.

Investors, however, remain concerned about a possible recession in the US. This, along with geopolitical risks stemming from the ongoing conflicts in the Middle East and China's economic woes, holds back traders from placing aggressive bullish bets around the China-proxy AUD. The JPY, on the other hand, gained traction after the Bank of Japan’s (BoJ) summary of opinions from the July meeting indicated that some members see room for further rate hikes and policy normalization. This further contributes to capping the AUD/JPY cross. 

The aforementioned mixed fundamental backdrop and the lack of strong follow-through buying warrant some caution before confirming that spot prices have bottomed out in the near term and positioning for any further appreciating move. The market focus now shifts to the latest inflation figures from China, due for release during the Asian session on Friday. The data will play a key role in influencing the Aussie and provide some meaningful impetus to the AUD/JPY cross.

Australian Dollar PRICE Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.11% -0.06% -0.38% -0.20% -0.60% -0.21% -0.29%
EUR 0.11%   0.05% -0.24% -0.11% -0.50% -0.10% -0.19%
GBP 0.06% -0.05%   -0.30% -0.17% -0.58% -0.18% -0.25%
JPY 0.38% 0.24% 0.30%   0.12% -0.26% 0.08% 0.03%
CAD 0.20% 0.11% 0.17% -0.12%   -0.39% -0.00% -0.09%
AUD 0.60% 0.50% 0.58% 0.26% 0.39%   0.39% 0.31%
NZD 0.21% 0.10% 0.18% -0.08% 0.00% -0.39%   -0.08%
CHF 0.29% 0.19% 0.25% -0.03% 0.09% -0.31% 0.08%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

 

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