EUR/USD 1.16303
-0.006%
Gold 4073.88
-0.738%
Oil 61.499
0.298%
USD/JPY 152.971
0.097%
GBP/USD 1.33222
0.082%
GBP/JPY 203.794
0.178%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 27th, the Bank of Japan (BOJ) held its first meeting since loose monetary policy advocate Sanae Takaichi became prime minister on Thursday, with the bank widely expected to hold interest rates steady. Of the 50 Bank of Japan (BOJ) observers surveyed, only 10% expected the central bank to raise borrowing costs from 0.5% after the two-day meeting. Last month, over a third expected action at this weeks meeting. Bank of Japan Governor Kazuo Ueda and his committee are searching for the right moment to raise borrowing costs to their highest level since 1995, and Takaichis presence exacerbates their decision-making difficulties. "The BOJ will hold its ground," said Shinichiro Kobayashi, chief economist at Mitsubishi UFJ. "They wont say it explicitly, but because of Takaichi, theyre having to wait and see." What is clear is that market expectations for a rate hike this week are very low, meaning a surprise hike could shock financial markets. Kobayashi noted, "If the BOJ raises rates this time, theres a risk of market volatility."International Energy Agency Executive Director Fatih Birol said that by 2030, global renewable energy installed capacity will fall 1 terawatt short of the target of tripling it.According to Yonhap News Agency: Kevin Kim has been officially appointed as the acting U.S. ambassador to South Korea.Japanese Chief Cabinet Secretary Minoru Kihara: Foreign exchange has both positive and negative effects on the economy.Japanese Chief Cabinet Secretary Minoru Kihara: We are closely monitoring excessive and disorderly fluctuations in the foreign exchange market.

Because of bad news on Australian exports, the AUD/JPY has dropped to roughly 97.00

Alina Haynes

Sep 08, 2022 15:52

 截屏2022-09-08 上午11.08.53.png

 

The Australian Bureau of Statistics' announcement of disappointing trade data has sent the AUD/JPY currency pair plunging. Since Australian exports have dropped so significantly, the cross has depreciated to around 97.00. Monthly export figures for the commodity-linked currency fell 9.9 percent, well below the expansion of 5.0 percent that had been predicted. There was also an increase of 5.2% in imports, up from 0.7% in the prior report. The Trade Balance is at $8,733m, down substantially from the forecasted $14,500m.

 

The Australian dollar has risen this week against the Japanese yen due to a number of factors. First, the Official Cash Rate (OCR) in Australia was raised to 2.85% by the Reserve Bank of Australia (RBA), marking the fourth consecutive increase of 50 basis points. RBA Governor Philip Lowe has maintained the central bank's "restrictive" stance on interest rates since inflationary pressures in the Australian economy have not peaked.

 

The RBA included a strategy for bringing inflation down to target levels in its announced monetary policy. Advice on interest rates and inflationary pressures deserved rigorous scrutiny. OCE hike forecasted by RBA policymakers to 3.85%. Inflation will reach its highest point of about 7% before beginning to fall the following year. Naturally, this will deepen the existing gulf in policy stances between Australia's Reserve Bank and Japan's Bank of Japan (BOJ).

 

The next step is the release of conflicting GDP estimates. Australia's quarterly GDP came in at 0.9%, which was below expectations of 1% but higher than the prior announcement of 0.8%. The yearly figure, however, has increased to 3.6% from the estimated 3.5% and the prior print of 3.3%.

 

Optimistic GDP data in Japan have supported the bulls in the Tokyo currency market. When compared to forecasts of 2.9% and the prior figure of 2.2% on an annualized basis, the latest economic data shows a significant increase to 3.5%. Furthermore, quarterly data have been recorded at 0.9%, which is above both the 0.7% forecast and the 0.5% previous report.

Suggestion