AUD/JPY daily chart
The aussie is the lead gainer in trading today, helped out by the RBA’s surprise decision to raise the cash rate by 25 bps earlier here.
That is seeing AUD/JPY get a decent lift, trading up by 0.7% to near 93.00 again with the high earlier briefly hitting 93.14 – its highest level since December last year.
Since the turn of the year, the pair has been somewhat stuck in a bit of a consolidation mood. However, after April when new BOJ governor Ueda stepped in, the pair has been slowly gaining upside traction – even if it hasn’t quite been a smooth journey.
The pair had moved from around 88.00 to near 93.00 now as the divergence in monetary policy between the BOJ and RBA is very much supporting the latter. The Japanese central bank had refrained from making a splash in moving away from its ultra easing policy while the Australian central bank has surprised with rate hikes now in back-to-back meetings instead.
Going back to the technicals, a break above 93.00 and the highs from February will be rather encouraging for AUD/JPY buyers moving forward. That could tee up a push towards the October highs from last year, closer to the 95.55-73 region next.