During Tuesday’s Asian session, AUD/JPY dipped toward 103.20 as the Australian dollar softened following the RBA’s rate decision. Market participants are now awaiting comments from Bank of Japan Governor Kazuo Ueda later in the day.
As expected, the Reserve Bank of Australia kept its Official Cash Rate unchanged at 3.6% after its December policy meeting. The RBA noted that while some of the recent rise in underlying inflation may be linked to temporary factors, the data point to a broader pickup in price pressures that warrants close monitoring. The bank said it will remain cautious and update its outlook as new information comes in.
Meanwhile, reports of a significant earthquake in Japan could weigh on the yen and lend support to the AUD/JPY cross. Traders are evaluating the quake’s potential fallout, with analysts warning that severe damage might prompt the Bank of Japan to delay a rate hike planned for its December 18–19 policy meeting.
