Ella 
AUD/JPY continues its winning streak following firmer Australian CPI data released on Wednesday.
Australia’s 10-year government bond yield surged to 4.49%, near a five-month high, as expectations of a rate cut from the Reserve Bank of Australia faded.
The yen continued to weaken as the Bank of Japan was expected to abandon a rate hike on Friday.
AUD/JPY is higher for the fourth consecutive session on Thursday. The Australian dollar (AUD) found support after Australian consumer price index (CPI) data released on Wednesday exceeded expectations. This development suggested that the Reserve Bank of Australia (RBA) may take a hawkish stance on monetary policy, boosting the Australian dollar, which in turn supported the AUD/JPY exchange rate.
Australia’s 10-year government bond yield surged above 4.49%, near a five-month high, as strong domestic inflation data reinforced expectations that the Reserve Bank of Australia will delay a rate cut. In addition, the easing of tensions in the Middle East has also contributed to positive market sentiment, benefiting risk-sensitive currencies such as the Australian dollar.
The Japanese yen (JPY) continues to lose value ahead of the Bank of Japan’s (BOJ) monetary policy statement on Friday. The Bank of Japan is widely expected to give up on raising interest rates at this meeting.
The Bank of Japan may review “the impact of accelerated depreciation of the yen,” Nikkei reported, suggesting the central bank may intervene in the foreign exchange market if the yen weakens.
