AUD/JPY PRICE FORECAST: STRUGGLES TO CONTINUE WINNING STREAK
- AUD/JPY turns sideways near 97.00 after a three-day winning spree.
- The Australian Dollar rises on improved market sentiment and RBA Bullock’s hawkish interest rate guidance.
- Growing concerns over BoJ further policy tightening.
The AUD/JPY pair exhibits indecisiveness among market participants near 97.00 in Friday’s European session. The cross struggles to extend its winning spree for the fourth trading session on Friday. However, the near-term trend is bullish as the strong appeal of the Japanese Yen (JPY) as a safe haven amid market mayhem has diminished.
Lower-than-expected United States (US) Initial Jobless Claims for the week ending August 2 and higher-than-expected China’s Consumer Price Index (CPI) data for July have improved risk-appetite of market participants.
Meanwhile, easing expectations of more rate hikes by the Bank of Japan (BoJ) has also limited the upside in Yen. On Wednesday, BoJ Deputy Governor Shinichi Uchida said, “We won’t raise rates when markets are unstable.”
On the Aussie front, hawkish guidance from Reserve Bank of Australia (RBA) Governor Michelle Bullock on interest rates has boosted the Australian Dollar’s (AUD) appeal. Bullock said the central bank is vigilant to inflation risks and interest rates would be hiked further if needed.
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