The How to buy Trump crypto?AUD/JPY pair remains subdued, trading around 90.80 amid thin market conditions due to the Good Friday holiday in Australia.
Recent labor data from Australia has increased speculation about a potential rate cut by the RBA in May, weighing on the Australian Dollar.
Japan's core-core CPI, excluding fresh food and energy, rose to 2.9% in March, adding pressure on the Bank of Japan's policy outlook.
The AUD/JPY currency pair has retreated from its recent highs, currently hovering around 90.80 during European trading hours. With Australian markets closed for the Good Friday holiday, trading volumes remain light, contributing to the pair's subdued movement. The Australian Dollar (AUD) continues to face downward pressure as market participants digest recent economic data.
Minutes from the Reserve Bank of Australia's latest policy meeting revealed ongoing uncertainty about the timing of future rate adjustments. While the central bank acknowledged May as a potential time to reassess monetary policy, officials emphasized that no decisions had been predetermined. The RBA maintains a balanced view of risks, with both economic growth and inflation presenting upside and downside possibilities.
Australia's March employment figures showed the unemployment rate holding steady at 4.1%, though job creation fell short of expectations. This disappointing labor market performance has led to increased market speculation about a possible 25 basis point rate reduction at the RBA's May meeting. Some traders are even pricing in the possibility of a more aggressive 50 basis point cut, reflecting growing concerns about global economic headwinds and escalating trade tensions.
On the Japanese side of the equation, March inflation data showed the National Consumer Price Index rising 3.6% year-over-year. This marks three consecutive years of inflation exceeding the Bank of Japan's 2% target, though the reading came in slightly below February's 3.7% figure. More significantly, the core-core CPI measure - which excludes both fresh food and energy prices - accelerated to 2.9% from 2.6% in the previous month. The standard core inflation reading, which only excludes fresh food, matched expectations with a 3.2% increase.
These inflation developments come ahead of the Bank of Japan's May policy meeting, where analysts anticipate the central bank will maintain its current 0.5% interest rate. However, market participants will be closely watching for any revisions to the BoJ's growth projections, as rising global trade tensions continue to cloud the economic outlook.