- The AUD/JPY pair is down slightly following Bank of Japan Governor Ueda’s hawkish speech in parliament.
- The BoJ could raise interest rates even further if its economic forecasts prove precise.
- The decline in the Australian dollar may be circumscribed due to the RBA’s aggressive policy.
AUD/JPY snapped its three-day winning streak, trading around 97.50 during European hours on Monday. The Japanese yen (JPY) gained against the Australian dollar (AUD) as Bank of Japan (BoJ) Governor Kazuo Ueda delivered a hawkish speech in Parliament on Friday.
BoJ Governor Ueda said the central bank could raise interest rates even further if its economic forecasts prove precise. In addition, Japan’s latest inflation data reinforced the BoJ’s hawkish stance on the policy outlook.
Japan’s national consumer price index (CPI) rose 2.8% year-on-year in July, holding steady for a third straight month and remaining at its highest level since February. The national CPI excluding fresh food also rose 2.7%, meeting expectations and reaching its highest level since February.
However, the downside for the AUD/JPY pair may be circumscribed as the Australian dollar may gain ground on growing market optimism following US Federal Reserve (Fed) Chairman Jerome Powell’s dovish speech at the Jackson Hole Symposium on Friday.
The Australian dollar could also receive support from the hawkish stance surrounding the Reserve Bank of Australia (RBA) regarding its policy outlook. The RBA’s latest minutes showed board members agreeing that a rate cut is unlikely in the near future. Furthermore, RBA Governor Michele Bullock has indicated that the Australian central bank will not hesitate to raise interest rates again to combat inflation if necessary.
Australian dollar price today
The table below shows the percentage change in the Australian dollar (AUD) against the major currencies traded today. The Australian dollar was the weakest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.15% | -0.27% | -0.04% | 0.30% | 0.29% | -0.25% | |
| EUR | -0.09% | -0.01% | -0.35% | -0.12% | 0.11% | 0.20% | -0.31% | |
| GBP | -0.15% | 0.00% | -0.47% | -0.17% | 0.11% | 0.14% | -0.36% | |
| JPY | 0.27% | 0.35% | 0.47% | 0.26% | 0.65% | 0.79% | 0.13% | |
| BOOR | 0.04% | 0.12% | 0.17% | -0.26% | 0.32% | 0.36% | -0.19% | |
| AUD | -0.30% | -0.11% | -0.11% | -0.65% | -0.32% | 0.09% | -0.42% | |
| NZD | -0.29% | -0.20% | -0.14% | -0.79% | -0.36% | -0.09% | -0.51% | |
| CHF | 0.25% | 0.31% | 0.36% | -0.13% | 0.19% | 0.42% | 0.51% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select the Australian dollar from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
