Audjpy Crosses Resistance

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Audjpy Crosses Resistance

Aud/Jpy Crosses 96.00 On Improved Risk Sentiment

AUD/JPY has reversed its intraday losses and is now trading near 96.10 on Wednesday. However, not everything's right at this point, as the cross may move lower again as JPY is boosted by the hawkish comments from the BoJ.

While the BoJ has maintained a hawkish tone, that's not the case with the Fed, which is now just hours away from making the deep cut to its interest rate. Once the FOMC decision is out, the focus will shift to the BoJ's meeting, which is due on Friday.

Boj To Keep Rates Unchanged For Now

According to experts, the Bank of Japan will make no changes to its interest rate policy for now. However, the comments from BoJ will likely keep the doors open for future rate hikes.

According to Japanese Finance Minister Suzuki, rapid major fluctuations in foreign exchange are undesirable. He also added that the officials are keeping a close eye on the FX movements and their effects on Japan's economy.

The Japanese government will also keep an eye on the effect of a stronger JPY and will adjust its policy accordingly. In short, the officials don't want the JPY to weaken too much and also don't want a too strong JPY as well.

For now, no major downside is expected in the AUD/JPY as the AUD remains supported due to RBA's hawkish stance. Also, the RBA governor has made it clear that they are not thinking about cutting rates as inflation remains high.

Meanwhile, RBA's assistant governor has commented on how the labor market remains strong. She also added that wage growth in Australia has peaked and will now slow in the coming months.

Next up is the jobs data from Australia which will reveal the unemployment rate and employment change during August. This report will provide insights into the Aussie's labor market and will also effect the country's domestic monetary policy.

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