Markets.com Logo
euEnglish
LoginSign Up

Forex market today: AUD/JPY moves below 96.50 on robust Japan’s PPI

Dec 11, 2024
3 min read
Table of Contents
  • 1. AUD/JPY Slides for Second Consecutive Day, Trading Around 96.30
  • 2. RBA Maintains Cash Rate Amid Ongoing Inflation Risks and JPY Strength
  • 3. Implications for the BOJ

ten-thousand-yen-width-1200-format-jpeg.jpg

Forex market today, the forex market opened today with the AUD/JPY pair moving below the 96.50 level, driven by robust Japan’s PPI data.
 


AUD/JPY Slides for Second Consecutive Day, Trading Around 96.30


Forex market update: AUD/JPY continues to decline for the second day in a row, trading near 96.30 during early European hours on Wednesday. The risk-sensitive Australian Dollar (AUD) is facing headwinds against its major counterparts due to market caution ahead of the important US November Consumer Price Index (CPI) data, set to be released later in the North American session.

The ongoing weakness in the AUD/JPY cross can be linked to a softer Aussie Dollar, following less hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock during the post-meeting conference on Tuesday. These remarks have contributed to a more cautious sentiment in the market, impacting the AUD’s performance against the yen.
 


RBA Maintains Cash Rate Amid Ongoing Inflation Risks and JPY Strength


RBA Governor Bullock emphasized that while inflation risks on the upside have diminished, they remain and necessitate continued vigilance. He noted that the RBA will closely monitor all economic data, including employment figures, to inform future policy decisions. In its final policy meeting of December, the Reserve Bank of Australia chose to maintain the Official Cash Rate (OCR) at 4.35%.

The AUD/JPY pair experienced downward pressure due to a stronger Japanese Yen (JPY), bolstered by strong Producer Price Index (PPI) data that hints at the potential for further policy tightening by the Bank of Japan (BoJ).

However, the JPY is not exhibiting strong bullish momentum, as uncertainty persists regarding the BoJ's readiness to implement another rate hike in December. While BoJ Governor Kazuo Ueda has indicated that the timing for the next rate hike is nearing, supported by solid underlying inflation data, dovish BoJ board member Toyoaki Nakamura has cautioned against premature rate increases, contributing to skepticism about the BoJ's policy direction.
 


Implications for the BOJ


Analysts are increasingly anticipating potential rate hikes at the upcoming policy meeting on December 18-19, following the earlier increase to 0.25% in July. This shift comes as inflationary pressures complicate the Bank of Japan's (BOJ) outlook, which previously suggested that easing import costs would help relieve household burdens and stimulate consumption.

In March, the BOJ ended its decade-long ultra-loose monetary policy, marking a significant change towards sustainable inflation targeting. Governor Kazuo Ueda has signaled that further rate hikes may be on the table if inflation, supported by robust wage growth and increased consumption, stabilizes around the 2% target.

Recent data highlights persistent inflationary challenges, raising important questions about the sustainability of Japan's economic recovery. As the central bank navigates these complexities, the BOJ’s forthcoming policy decisions will be closely watched by market participants. The balance between fostering economic growth and managing inflation will be critical as Japan seeks to establish a more stable economic environment in the wake of recent shifts in monetary policy. This evolving landscape underscores the need for careful assessment of both domestic and global economic conditions.
 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -0.59%
  • EUR/USD

    chartpng

    --

    -0.20%
  • Cotton

    chartpng

    --

    0.32%
  • AUD/USD

    chartpng

    --

    0.21%
  • Santander

    chartpng

    --

    2.25%
  • Apple.svg

    Apple

    chartpng

    --

    -0.23%
  • easyJet

    chartpng

    --

    0.55%
  • VIXX

    chartpng

    --

    0.62%
  • Silver

    chartpng

    --

    -0.58%
Tags DirectoryView all
Table of Contents
  • 1. AUD/JPY Slides for Second Consecutive Day, Trading Around 96.30
  • 2. RBA Maintains Cash Rate Amid Ongoing Inflation Risks and JPY Strength
  • 3. Implications for the BOJ

Related Articles

Obama Admin Allegations of Falsifying Intel on Trump-Russia Interference

New documents reveal allegations of the Obama administration falsifying intelligence to link Trump to Russia. Tulsi Gabbard presents evidence to the DOJ, while Obama denies the claims.

Liam James|about 1 hour ago

Dubai Gold Market Surges: Solidifying its Position as a Key Global Asset

Dubai's gold market is experiencing significant growth, fueled by increased demand for Shariah-compliant spot gold. This growth solidifies Dubai's position as a global gold trading hub.

Liam James|about 2 hours ago

Trump vs. Powell: Will the Fed Chair Stay or Go?

This article explores the recent developments in the ongoing conflict between President Trump and Federal Reserve Chair Jerome Powell, focusing on the mixed messages from the Trump administration regarding Powell's future as Fed Chair and the potential market impact.

Liam James|about 4 hours ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.