AUD/JPY trades around the highest since November 2014

AUD/JPY extends its winning streak for the fifth consecutive session on Friday. The Australian Dollar (AUD) finds support from increasing bids for a hawkish stance for the Reserve Bank of Australia’s (RBA) monetary policy. The revision by TD Securities indicates a delay in the expected rate cut by the Reserve Bank of Australia (RBA) until February 2025 instead of November. This boosts the Australian Dollar (AUD) and consequently supports the AUD/JPY cross.

Australia’s Consumer Price Index (CPI) data on Wednesday, surpassing expectations, is also playing a role in an increase in Australian government bond yields as traders price out expectations regarding interest rate cuts by the RBA in 2024. The Australian 10-year Government Bond Yield has reached a 21-week high of 4.59%, indicating a significant upward trend.


The Japanese Yen (JPY) has plunged following Japan's Tokyo Consumer Price Index (CPI) release, which came in well below expectations early Friday. This print marks the second time this year that inflation has fallen below the Bank of Japan's (BoJ) 2% target. The BoJ board members opted to maintain the key interest rate at 0% during its April monetary policy review meeting on Friday. Notably, in March, the central bank raised rates for the first time since 2007, signaling the end of Japan's negative interest rate era, which commenced in 2016.