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AUD/JPY REMAINS CAPPED UNDER 98.00, INVESTORS AWAIT BOJ’S UEDA SPEECH

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  • AUD/JPY loses traction near 97.90 in Wednesday’s Asian session.
  • The upbeat Australian PMI data failed to boost the Aussie. 
  • The BoJ is expected to raise rates again by the end of the year. 

The AUD/JPY cross trades in negative territory for the third consecutive day around 97.90 during the Asian trading hours on Thursday. The recent encouraging Australian Purchasing Managers Index (PMI) fails to boost the Aussie. Investors will closely monitor Bank of Japan's (BoJ) Governor Kazuo Ueda's speech on Friday for fresh impetus. 

Data released by Judo Bank and S&P Global on Thursday showed that the preliminary reading of Australia's Judo Bank Manufacturing PMI climbed to 48.7 in August from 47.5 in July. The Services PMI rose to 52.2 in August versus 50.4 prior. Finally, the Composite PMI rose to 51.4 in August versus 49.9 prior.  

The downside of the Australian Dollar (AUD) might be limited due to the hawkish stance of the Reserve Bank of Australia (RBA). The Australian central bank noted that the cash rate might stay unchanged for an extended period and that a rate cut is unlikely soon.



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