- AUD/JPY holds steady following the Bank of Japan’s interest rate decision.
- The BoJ maintained its short-term interest rate target within the 0.40%-0.50% range in March.
- The Australian Dollar remains stable as traders exercise caution ahead of the Fed’s interest rate decision due on Wednesday.
AUD/JPY remains firm near 95.10 during Asian trading hours on Wednesday, following the Bank of Japan’s (BoJ) interest rate decision. As widely expected, the BoJ kept its short-term interest rate target within the 0.40%-0.50% range after concluding its two-day monetary policy review.
The BoJ’s BoJ Monetary Policy Statement noted that Japan's economy is recovering moderately, though some weak signs persist. Consumption is increasing gradually, and inflation expectations are rising at a measured pace. However, risks remain, particularly regarding global trade policies and their impact on overseas economies and prices.
BoJ Governor Kazuo Ueda reiterated the central bank’s readiness to raise interest rates further if inflation moves sustainably toward its 2% target. Speaking in parliament on March 12, Ueda emphasized that long-term interest rates are influenced by market expectations for the BoJ’s short-term policy stance, reinforcing the possibility of hikes later in the year.
Meanwhile, the Australian Dollar (AUD) remains steady as traders adopt a cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision later in the day. Markets expect the Fed to hold rates steady amid persistent inflation concerns and economic uncertainty.
On the domestic front, Australia's Westpac-Melbourne Institute Leading Index rose by 0.1% month-over-month in February 2025, maintaining the same pace as the previous month. The six-month annualized growth rate in the index, which provides insight into the economy’s future trajectory, climbed to 0.8% from 0.6%. This reflects continued domestic resilience despite waning support from currency and commodity markets.
Economic Indicator
BoJ Interest Rate Decision
The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.
Read more.Last release: Wed Mar 19, 2025 02:25
Frequency: Irregular
Actual: 0.5%
Consensus: 0.5%
Previous: 0.5%
Source: Bank of Japan
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.