AUD/JPY Maintains Strength Amid Improved Risk Sentiment

During the European session on Wednesday, AUD/JPY continued its upward trend, hovering around 103.70, supported by a boost in risk appetite.

The Australian Budget for 2024-25 has returned to a deficit after a surplus of $9.3 billion in the previous fiscal year (2023-24). The government aims to address headline inflation and alleviate living costs by allocating funds to reduce energy bills, rent, and lower income taxes.

On the economic front, the Australian Bureau of Statistics released the Wage Price Index (Q1) on Wednesday, showing a 0.8% increase in the first quarter, slightly below expectations. Year-over-year, the index rose by 4.1%, also slightly lower than anticipated.

Meanwhile, Japan’s Finance Minister Shunichi Suzuki emphasized collaboration with the Bank of Japan (BoJ) to align policy objectives regarding foreign exchange. The BoJ’s reduction in Japanese government bond purchases this week, the first since lifting its negative interest rate policy in March, has contributed to the stability of Japan’s 10-year government bond yield around 0.95%, its highest level in over six months.

The interest rate differential between Japan and other major economies continues to drive investor behavior, with the yen (JPY) depreciating as investors borrow JPY to invest in higher-yielding currencies. This dynamic has supported the strength of AUD/JPY amid the current market sentiment.

AUD latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright fxcurrencyconverter.com