AUD/JPY moves below 104.50 after China decides to hold interest rates

By TradeRadius | Mon, 20 May 2024 10:39:07 UTC

img for post
  • AUD/JPY lost ground due to possible risk aversion sentiment.
  • The Australian Dollar pared its gains after China's interest rate decision.
  • PBOC maintained the one-year and five-year LPR at 3.45% and 3.95%, respectively.

AUD/JPY has trimmed its intraday gains, trading around 104.20 during the European session on Monday, amid a risk aversion sentiment. Earlier in the day, the Australian Dollar (AUD) appreciated but later pared its gains following China's interest rate decision. The People's Bank of China (PBOC) maintained the one-year and five-year Loan Prime Rates (LPR) at 3.45% and 3.95%, respectively. Traders are now awaiting the Reserve Bank of Australia's (RBA) Meeting Minutes, which are set to be released on Tuesday.

The Australian Dollar could encounter obstacles as the yield on Australia's 10-year government bond hovers around 4.2% at its lowest level in a month. This decline in bond yields comes in the wake of a softer domestic jobs report for the first quarter. Sluggish wage growth has led markets to diminish the likelihood of any interest rate hikes by the Reserve Bank of Australia (RBA).

On the JPY front, the significant interest rate differential between Japan and other countries exerts selling pressure on the Japanese Yen (JPY) and boosts the AUD/JPY cross. The Bank of Japan (BoJ) abandoned the negative interest rate policy in March. Moreover, traders speculate that the BoJ might reduce bond purchases at the June policy meeting. BOJ Governor Kazuo Ueda also indicated that there are no immediate plans to sell the central bank’s ETF holdings.

The findings of a survey conducted by the Bank of Japan (BoJ) to evaluate its past monetary easing measures showed that Japan is on the brink of witnessing significant changes in corporate activity. Many firms stated that they are unable to hire enough workers if they cut wages. Additionally, more firms are beginning to pass on rising labor costs to sales prices. Manufacturers identified FX stability as the most crucial factor they desired from the BoJ’s monetary policy.

Share

Partners News

CoinShares Rebrands XBT Provider, Targets Nordic Expansion

CoinShares International Limited, a leading digital asset investment company, has announced the rebranding of its long-standing crypto ETP brand, XBT Provider, to "CoinShares XBT Provider." This move aligns with the company's group strategy and sets the stage for expansion in the second half of...

By TradeRadius | 1 Minutes Ago

> >

What is circularity?

A vine of green ivy growing from an aluminum sardine tin on a light blue background. Ever since the Industrial Revolution, we’ve consumed products in largely the same way. A company will extract or collect the resources to create a product, which consumers then buy, use, and ultimately throw a...

By TradeRadius | 2 Minutes Ago

> >

EUR/USD Forex Signal: Consolidating Below $1.0709 - 17 June 2024

My previous EUR/USD signal on 11th June produced a profitable long trade from a bullish bounce at the support level of $1.0722. The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle w...

By TradeRadius | 3 Minutes Ago

> >

BTC/USD Forex Signal: Forecast as Bitcoin Forms a Double Top - 17 June 2024

Bitcoin price remained under pressure on Monday morning as the recent bullish momentum faded. The BTC/USD pair was trading at 66,580 on Monday, down from this month’s high of almost 72,000. The price of Bitcoin and other altcoins dipped sharply recently after the Federal Reserve delivered a h...

By TradeRadius | 3 Minutes Ago

> >

AUD/USD Forex Signal: Forecast Ahead of the RBA Decision - 17 June 2024

The AUD/USD pair retreated after last week’s hawkish Federal Reserve decision. It dropped to the important support at 0.6600 ahead of the upcoming Reserve Bank of Australia (RBA) interest rate decision.

By TradeRadius | 3 Minutes Ago

> >

There’s an unbalanced economy of have and have-nots. Here’s how investors should approach that, says Morgan Stanley.

By TradeRadius | 14 Minutes Ago

> >

Gold, Silver Biding Their Time Before Next Breakout

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external...

By TradeRadius | 15 Minutes Ago

> >

Ukraine urges bondholders to accept markdown on more than $20bn of debt

Investors rejected government proposal this month to reduce bonds’ value by up to 60% ahead of deadline

By TradeRadius | 15 Minutes Ago

> >

China’s PBOC holds steady on key policy rates

China’s central bank kept its key policy rates unchanged on Monday, indicating a likely hold on the benchmark lending rate later this month.

By TradeRadius | 22 Minutes Ago

> >

China’s PBOC holds steady on key policy rates

China’s central bank kept its key policy rates unchanged on Monday, indicating a likely hold on the benchmark lending rate later this month.

By TradeRadius | 22 Minutes Ago

> >