AUD/JPY Hovers Around 97.50 After Paring Losses, RBA, BoJ Decisions Loom

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  • AUD/JPY faces headwinds on market anticipation of a shift in the BoJ's policy stance.
  • Reuters cited news agency Jiji that the BoJ plans to end its negative interest rate policy.
  • RBA maintains its potential stance for further rate hikes ahead of the policy decision on Tuesday.

AUD/JPY trims some of its daily losses and trades lower around 97.50 during the European hours on Friday. The AUD/JPY cross faces headwinds as the Japanese Yen strengthens, driven by market anticipation of a potential shift in the Bank of Japan's policy stance, following reports of major Japanese companies fully responding to union demands for wage hikes.

Additionally, Reuters reported on Thursday, citing Japanese news agency Jiji, that the Bank of Japan is planning to discontinue its negative interest rate policy during the March 18-19 meeting. The final decision will depend on the outcome of the preliminary survey regarding this year's spring wage negotiations by the labor organization Rengo, expected on Friday.

Meanwhile, the AUD/JPY cross gains some upward momentum as the Australian Dollar weakens amid a broad market sell-off, particularly evident in the lower S&P/ASX 200 Index. Australian equities mirror losses seen on Wall Street, with significant declines observed in banking and iron ore mining sectors.

Despite these challenges, the AUD/JPY cross may find support as the Reserve Bank of Australia (RBA) maintains its potential stance for further rate hikes. Analysts, according to a Reuters poll conducted before the RBA meeting, anticipate the central bank to keep its official cash rate unchanged at 4.35% for a third consecutive meeting, with no expected adjustments until at least the end of September.

Looking ahead, both the RBA and the Bank of Japan are scheduled to announce their policy decisions on Tuesday, adding further anticipation to the market regarding monetary policy directions.
 

AUD/JPY

OVERVIEW
Today last price 97.5
Today Daily Change -0.12
Today Daily Change % -0.12
Today daily open 97.62
TRENDS
Daily SMA20 98
Daily SMA50 97.47
Daily SMA100 97.11
Daily SMA200 95.99
LEVELS
Previous Daily High 97.94
Previous Daily Low 97.43
Previous Weekly High 98.22
Previous Weekly Low 97.28
Previous Monthly High 99.06
Previous Monthly Low 95.5
Daily Fibonacci 38.2% 97.62
Daily Fibonacci 61.8% 97.74
Daily Pivot Point S1 97.38
Daily Pivot Point S2 97.15
Daily Pivot Point S3 96.87
Daily Pivot Point R1 97.9
Daily Pivot Point R2 98.18
Daily Pivot Point R3 98.41

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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

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