AUD/JPY Advances To Near 99.50 Due To Hawkish RBA Stance On Policy Outlook

AUD/JPY retraces its recent losses registered in the previous day, trading around 99.40 during Wednesday’s European session. The hawkish sentiment surrounding the Reserve Bank of Australia (RBA) regarding its interest rate trajectory provides support for the Australian Dollar (AUD) and underpins the AUD/JPY cross.However, the upside of the risk-sensitive Aussie Dollar could be retrained due to rising risk aversion sentiment amid escalating geopolitical tensions in the Middle East. Iran launched over 200 ballistic missiles at Israel, prompting Prime Minister Benjamin Netanyahu to vow retaliation against Tehran for the Tuesday attack. In response, Iran warned that any counterstrike would lead to “vast destruction,” heightening concerns of a broader conflict, per Bloomberg.The Japanese Yen (JPY) received downward pressure as the BoJ’s Summary of Opinions from September’s Monetary Policy Meeting indicates no immediate plans for additional rate hikes. The central bank intends to maintain its accommodative stance but remains open to adjustments if economic conditions show significant improvement.Additionally, Japan’s Economic Revitalization Minister Ryosei Akazawa stated on Wednesday that Prime Minister Shigeru Ishiba anticipates the Bank of Japan will conduct thorough economic evaluations before raising interest rates again.In his first news conference as the economy minister, Akazawa emphasized, “Our top priority is to ensure that Japan fully exits deflation,” adding that “it will take some time to achieve a complete exit,” according to Reuters.More By This Author:WTI Remains Sluggish Near $68.00 As OPEC+ Plans To Increase Output In December AUD/JPY Rises Above 98.50 Due To Rising Odds Of Rba Maintaining A Restrictive Policy AUD/JPY Falls To Near 98.50 Following Ishiba Winning The LDP Presidential Election