Selling AUDJPY

5 thg 12, 2023

Today, I am selling AUD because the Reserve Bank of Australia has kept interest rates on hold at 4.35% as anticipated on Tuesday. This has fueled expectations that the bank may be bringing its own tightening cycle to an end. However, RBA Governor Michele Bullock stated in a note that there are still "significant uncertainties" surrounding the outlook on goods inflation. She also noted that while the Australian economy has cooled under high interest rates, it remains largely resilient, potentially exerting more upward pressure on price growth. On the other hand, I am bullish on the yen due to the uncertainty surrounding the targeted economies' growth.