Ella 
AUD/JPY rose for the third consecutive trading day during the European session on Wednesday, trading around 96.50. The pair’s gains were attributed to a weakening Japanese yen (JPY) after Bank of Japan (BoJ) Governor Kazuo Ueda failed to provide clear guidance on the future path of interest rates.
At a parliamentary session, Ueda reiterated that the central bank would maintain its monetary policy until sustainable 2% inflation was achieved, but did not provide a clear timetable for exiting Japan’s massive stimulus program.
In contrast, Bank of Japan board member Naoki Tamura last week stressed the need to raise the policy rate to at least 1% in the second half of fiscal 2025. In addition, stronger-than-expected wage and household spending data also strengthened the hawkish outlook for monetary policy.
However, upside for AUD/JPY is limited as the Australian dollar struggles amid increased risk aversion. Sentiment soured after U.S. President Donald Trump announced a 25% tariff increase, while Federal Reserve Chairman Jerome Powell said the central bank was in no rush to cut interest rates further.
Adding pressure on the Australian dollar, Trump’s trade adviser Peter Navarro criticized Australia late on Tuesday, accusing the country of “destroying the aluminum market.” This came a day after Trump signed an executive order imposing tariffs on certain metal imports. Australia is currently seeking an exemption from new steel and aluminum tariffs, a request that Trump has previously said he would “seriously consider” because of the trade imbalance between the two countries.
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