AUD/JPY maintains business above 90.00 ahead of RBA minutes, China GDP eyed

• AUD/JPY is holding its auction above 90.00 ahead of RBA minutes and China GDP data.
• Quick softening of Australia’s inflation must have provided the luxury of keeping rates steady at 3.60% to RBA.
• Support for the continuation of ultra-loose monetary policy by BoJ has impacted the Japanese Yen.

The AUD/JPY pair is making efforts in keeping its auction above the round-level resistance of 90.00 in the early Tokyo session. The risk barometer is expected to remain in action amid the release of the Reserve Bank of Australia (RBA) minutes.

Considering the sideways cues from the AUD/USD pair, AUD/JPY is showing a similar action.

The release of the RBA minutes will provide a detailed explanation behind the unchanged interest rate decision taken in April’s monetary policy meeting. Apart from that, cues about interest rate guidance will be keenly watched.

It is highly likely that the quick softening of Australia’s inflation must have provided the luxury of keeping rates steady at 3.60% to RBA Governor Philip Lowe. Investors should be aware of the fact that Australia’s monthly Consumer Price Index (CPI) has dropped to 6.8% from the peak of 8.4% recorded in December.

Also, RBA Lowe cited that the Australian economy is on track for a slowdown and inflationary pressures will keep on declining swiftly.

Apart from the RBA minutes, China’s Gross Domestic Product (GDP) data will be keenly watched. The street is anticipation a growth rate of 2.2% vs. a flat performance showed in the last quarter of CY2022. Annual consensus shows the economy has expanded by 4.0% against a 2.9% growth rate. Investors should note that Australia is the leading trading partner of China and higher Chinese GDP will also support the Australian Dollar.

On the Tokyo front, support for the continuation of ultra-loose monetary policy by Bank of Japan (BoJ) Governor Kazuo Ueda has impacted the Japanese Yen dramatically.