The Australian Dollar/Japanese Yen pair continued its downward trend on Monday, trading near 100.20. While the Japanese Yen may have received some support from potential government intervention, uncertainty surrounding the Bank of Japan’s (BoJ) monetary policy remains a headwind.
The Australian Dollar, however, is supported by the hawkish stance of the Reserve Bank of Australia (RBA) and the recent rate cuts by the People’s Bank of China (PBoC). The PBoC’s rate cuts are expected to boost China’s domestic economic activity, which could benefit the Australian economy through increased exports.
Key Factors:
- Japanese Yen: Uncertainty about BoJ monetary policy and potential government intervention are impacting the Yen.
- Australian Dollar: The RBA’s hawkish stance and China’s rate cuts are supporting the Australian Dollar.
- Geopolitical Tensions: Escalating tensions in the Middle East and the risk of a broader regional war could also influence the AUD/JPY pair.
