AUD/JPY drops from 91.40 despite hawkish RBA’s policy statement

The AUD/JPY pair has sensed selling pressure after printing an intraday high above 91.40 in the Asian session. The Australian Dollar has met offered despite the hawkish monetary policy statement by the Reserve Bank of Australia (RBA).

Australian inflation has driven higher in December led by rising fuel prices, series demand, and electricity prices. Electricity prices rose by 7% in December due to the unwinding of rebates in Western Australia.

On growth forecasts, RBA policymakers have projected a Gross Domestic Product (GDP) growth to have been 2.75% in 2022 and to be 1.5% over both 2023 and 2024.

On the Japanese Yen front, investors are awaiting the list of nominations for the successor Bank of Japan (BoJ) Governor Haruhiko Kuroda. Analysts at Commerzbank believe “The nomination, which is expected to take place next week, is likely to upset the Yen exchange rates quite heavily, regardless of which candidate will emerge as the favorite.”

Meanwhile, Japanese Prime Minister Fumio Kishida said, “The administration is in process of choosing the next BoJ Governor nominee, they are mindful of very strong market attention on the decision.” He further added, “It has become more important for someone like the new BoJ governor to have strength in communication.”

An update from Reuters states Japan’s government is planning to present the new Bank of Japan governor nominee and two deputy governor nominees to parliament on Feb. 14