Ella 
AUD/JPY pared intraday losses and was trading around 96.10 during the European session on Wednesday. However, AUD/JPY is likely to maintain its losses as the Japanese yen (JPY) finds support from hawkish sentiment surrounding the Bank of Japan’s (BoJ) policy outlook.
Traders are awaiting the U.S. Federal Reserve’s (Federal Reserve) interest rate decision, scheduled to be released later in the North American session. Focus will turn to the Bank of Japan’s policy decision on Friday, where it is expected to keep interest rates unchanged while leaving open the possibility of further hikes.
Japanese Finance Minister Shuni Suzuki said on Tuesday that rapid fluctuations in foreign exchange (FX) are undesirable. Suzuki stressed that officials will pay close attention to the impact of foreign exchange fluctuations on Japan’s economy and people’s livelihood. Reuters reported that the government will continue to evaluate the impact of the strong yen and take corresponding countermeasures.
The Australian dollar (AUD) is supported by the Reserve Bank of Australia’s (RBA) hawkish stance on the outlook for monetary policy, so the downside for AUD/JPY may be contained. Reserve Bank of Australia Governor Michele Bullock said it was too early to consider cutting interest rates as inflation remains high. In addition, Sarah Hunter, assistant governor of the Reserve Bank of Australia, pointed out that although the labor market remains tight, wage growth appears to have peaked and is expected to slow further.
Investors are currently awaiting Australian employment data due on Thursday, including employment changes and the unemployment rate for August. The report could provide insight into the health of the labor market and could influence expectations about the future direction of domestic monetary policy.
