- AUD/JPY has printed a fresh four-year high at 88.40 as the BOJ kept interest rates unchanged.
- The risk barometer has jumped over the print of Japan’s National CPI at 0.9% below the upside cap of 2%.
- Apart from Biden-NATO talks, investors will also focus on RBA’s Lowe speech.
The AUD/JPY pair has recorded a fresh four-year high at 88.40 on Monday amid broader weakness in the Japanese yen post the unchanged interest rate policy by the Bank of Japan (BOJ) on Friday. The asset has been scaling higher from the last three trading sessions and is expected to display a similar momentum follow-up on Monday.
Investors have underpinned the aussie against the Japanese yen after the BOJ Governor Haruhiko Kuroda preferred to maintain the status quo and kept the interest rate at -0.1%. The decision came despite the wide deviation in Japan’s National Consumer Price Index (CPI) print. Japan’s National CPI came in at 0.9%, much higher than the previous print of 0.5% and market consensus of 0.3%. The major rationale behind the unchanged stance over the interest rates is the print of National CPI below the upside cap of 2%.
Meanwhile, the antipodean has remained a performer in the past few trading sessions on rising prices of base metals. Boiling oil prices after Russia’s invasion of Ukraine has eventually increased the prices of various commodities.
Now investors will focus on US President Joe Biden’s meeting with the NATO allies on Thursday, which will provide fresh impetus over the Russia-Ukraine war. But before that, a speech from the Reserve Bank of Australia (RBA)’s Governor Philip Lowe will hold significant importance. This will provide insights into the likely monetary policy action by the RBA in April’s meeting.