AUD/JPY slips below 93.00, downside capped as Japan examines debt issuance adjustments.
AUD/JPY slips below 93.00, downside capped as Japan examines debt issuance adjustments.
AUD/JPY ends its three-day winning run at 92.90 in Europe on Wednesday. The currency cross depreciates when the Japanese Yen (JPY) rises, presumably due to predictions that the BoJ would raise interest rates amid rising inflation.
The Japanese Yen may suffer again after Japan announced future debt cutbacks, allowing the AUD/JPY to recover. Bloomberg reported that Japan’s Ministry of Finance requested market comments on bond issuance and the market on Monday.
Reuters reported on Tuesday that Japan’s Ministry of Finance may reduce its super-long bond issuance to alter its bond program for the current fiscal year. Japan’s Finance Minister Shunichi Kato said Wednesday that the government is worried about rising rates and would constantly watch bond markets.
The Reserve Bank of Australia (RBA) may become less dovish and bring the cash rate to neutral in the next months, according to National Australia Bank (NAB). However, the NAB raised terminal rate projection to 3.1% from 2.6%.
