- AUD/JPY is performing subdued in early Tokyo as investors await China’s GDP.
- This week’s RBA minutes will reveal the reason behind the neutral stance opted by the RBA in April.
- The BOJ is expected to keep the ultra-loose monetary policy despite higher inflation forecasts.
The AUD/JPY pair is juggling in a narrow range of 92.82-93.90 as investors are awaiting the release of the Gross Domestic Product (GDP) numbers by the National Bureau of Statistics of China in Asia. The cross has been trending higher for a prolonged period amid the broader weakness in the Japanese yen.
It is worth noting that Australia is a leading exporter to China and its higher GDP numbers will have a positive impact on the Australian dollar. Market consensus for yearly China’s GDP is seen at 4.4% for the first quarter of CY22 against the prior print of 4% while a preliminary estimate for yearly China’s Industrial Production is 4.5%, significantly lower than the previous figure of 7.5%.
This week, the release of the Reserve Bank of Australia (RBA)’s minutes for April’s monetary policy will be the major event. The RBA’s minutes will dictate the mathematics behind the neutral stance opted by RBA Governor Philip Lowe. Also, the information about inflation in Australia will help the market participants to fine-tune their positions. Meanwhile, the Bank of Japan (BOJ) is expected to stick with its ultra-loose monetary policy despite a higher revision in the inflation forecasts as per Reuters. The agency further stated that the BOJ is expected to raise its fiscal 2022 inflation forecast to above 1.5% from the current 1.1% at the April meeting while downgrading the fiscal-2022 growth forecast from the current 3.8% expansion.
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
AUD/USD: Further gains retarget the 200-day SMA
Extra gains saw AUD/USD extend the breakout of the key 0.6500 barrier on Tuesday as hawkish RBA Minutes seem to have lent fresh wings to the Aussie Dollar despite the prevailing risk aversion.
EUR/USD: The recovery needs a stronger catalyst
EUR/USD reversed two daily pullbacks in a row and came under some fresh downside pressure following renewed geopolitical jitters on the Russia-Ukraine front, all prior to key data releases on both sides of the ocean due later in the week.
Gold remains propped up by geopolitics
Gold retreats slightly from the daily high it touched near $2,640 but holds comfortably above $2,600. Escalating geopolitical tensions on latest developments surrounding the Russia-Ukraine conflict and the pullback seen in US yields help XAU/USD hold its ground.
Why is Bitcoin performing better than Ethereum? ETH lags as BTC smashes new all-time high records
Bitcoin (BTC) has outperformed Ethereum (ETH) in the past two years, setting new highs while the top altcoin struggles to catch up with speed. Several experts exclusively revealed to FXStreet that Ethereum needs global recognition, a stronger narrative and increased on-chain activity for the tide to shift in its favor.
How could Trump’s Treasury Secretary selection influence Bitcoin?
Bitcoin remained upbeat above $91,000 on Tuesday, with Trump’s cabinet appointments in focus and after MicroStrategy purchases being more tokens.
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.