Ella 
In Asia on Thursday, the AUD/JPY extended gains for the second consecutive trading day, rising to around 97.10. AUD/JPY gains following Australian economic data.
Consumer inflation expectations in January remained unchanged at 4.5%, and the seasonally adjusted unemployment rate remained stable at 3.9%, unchanged from the previous and expected values. While these indicators remained stable, employment change data fell. Employment fell by 65,100, contrasting with expectations for a gain of 17,600.
However, dovish economic data may prevent the Reserve Bank of Australia from adjusting monetary policy at its upcoming meeting, potentially halting AUD/JPY’s upward momentum. The Reserve Bank of Australia is expected to maintain a cautious stance, with only two interest rate cuts expected for the rest of the year.
After the Reserve Bank of Australia raised interest rates by 25 basis points at its meeting in November last year, the current cash rate is 4.34%.
In Japan, the recent sharp decline in inflation in Tokyo and weak wage data released last week have strengthened market expectations that the Bank of Japan (BoJ) will maintain its ultra-dovish stance. This is therefore seen as an important factor in weakening the strength of the Japanese yen (JPY) and promoting the upward trend of the AUD/JPY.
