Ella 
AUD/JPY rose for the fifth consecutive session on Friday. The Australian Reserve’s increasingly hawkish stance on monetary policy provided support for the Australian dollar. TD Securities’ revision suggests the RBA may delay a rate cut until February 2025, rather than November this year. This boosted the Australian dollar and supported AUD/JPY.
Higher-than-expected Australian CPI data released on Wednesday also lifted Australian government bond yields as traders ruled out an interest rate cut by the Reserve Bank of Australia in 2024. Australia’s 10-year government bond yield hit a 21-week high of 4.59%, reflecting a sharp upward trend.
The Tokyo CPI released in early Asian trading on Friday was far lower than market expectations, and the yen exchange rate fell after the data was released. This is the second time this year that the indicator has fallen below the Bank of Japan’s 2% target. Bank of Japan board members chose to keep key interest rates unchanged at 0% at their April meeting. The central bank raised interest rates in March for the first time since 2007, announcing the end of the era of negative interest rates that began in 2016.
