AUDJPY – Daily Chart
The price of AUDJPY has been testing the 101.40 level and is at risk of a move to 100 which can open a deeper correction.
Thursday morning brings a speech from Reserve Bank of Australia Governor Bullock at 7 am HKT.
An hour later, data from Japan in the form of foreign investment, with Australian employment data, arrived at 8:30 am HKT. Australia is expected to post a lower jobs number than last month with 25k jobs versus 64.1k.
The RBA Governor has hinted again that excessive government spending means a rate cut is not coming. Michele Bullock’s latest warning was delivered ahead of the US Federal Reserve cutting rates for the second time this year.
While US rates are still marginally higher than Australia’s 12-year high of 4.35%, it’s another sign Australia is missing out as the rest of the world reduces rates. It is also an issue because US growth is much stronger than in Australia.
Ms Bullock also revealed that she had personally told Treasurer Jim Chalmers that too much government spending was causing Australia’s inflationary problems.
“My reading, when I speak privately to the Treasurer, and when I hear him speak on television and radio, is that he’s fully aware of the inflationary implications, of his own policies, he needs to be thinking about that, because he – like me – understands that inflation is really what’s hurting people at the moment,” she told reporters.
The failure of the Australian dollar to push higher from the current levels means the yen could gain some ground over the coming sessions.