- AUD/JPY gains ground on encouraging Chinese PMI data.
- Japanese Yen struggles after the expansion in Chinese manufacturing activity.
- RBA Meeting Minutes will be released on Tuesday to offer insights into the central bank's future policy direction.
AUD/JPY appreciates to near 98.80 during the European session on Monday, potentially supported by positive Chinese Purchasing Managers Index (PMI) figures. The close trading relationship between China and Australia likely contributes to this correlation.
Moreover, the safe-haven Japanese Yen (JPY) may have encountered negative sentiment as investor confidence was buoyed by the first expansion in Chinese manufacturing activity in six months, observed in March.
China’s Caixin Manufacturing PMI was reported at 51.1 on Monday, surpassing expectations of 51.0 and exceeding the previous reading of 50.9. Before that, on Sunday, China's National Bureau of Statistics (NBS) released data showing that the Manufacturing PMI rose to 50.8 in March from 49.1 in the prior month. Additionally, the Non-Manufacturing PMI increased to 53.0 in March from 51.4 in February.
Former BOJ official Tsutomu Watanabe has indicated that the next rate hike in Japan might not materialize until October at the earliest. According to an assessment reported by Bloomberg (gated), Watanabe foresees the BoJ adopting a cautious, data-driven approach, primarily due to concerns surrounding Yen depreciation.
However, the Australian Dollar (AUD) might have struggled due to weaker Consumer Inflation Expectations, which could suggest expectations for interest rate cuts by the Reserve Bank of Australia (RBA) in late 2024. Investors are anticipated to closely scrutinize the release of the RBA Meeting Minutes scheduled for Tuesday to gain insights into the central bank's stance and future policy direction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.