AUD/JPY eyes 94.00 ahead of the China’s GDP, focus shifts to the RBA minutes

• AUD/JPY is performing subdued in early Tokyo as investors await China’s GDP.
• This week’s RBA minutes will reveal the reason behind the neutral stance opted by the RBA in April.
• The BOJ is expected to keep the ultra-loose monetary policy despite higher inflation forecasts.

The AUD/JPY pair is juggling in a narrow range of 92.82-93.90 as investors are awaiting the release of the Gross Domestic Product (GDP) numbers by the National Bureau of Statistics of China in Asia. The cross has been trending higher for a prolonged period amid the broader weakness in the Japanese yen.

It is worth noting that Australia is a leading exporter to China and its higher GDP numbers will have a positive impact on the Australian dollar. Market consensus for yearly China’s GDP is seen at 4.4% for the first quarter of CY22 against the prior print of 4% while a preliminary estimate for yearly China’s Industrial Production is 4.5%, significantly lower than the previous figure of 7.5%.

This week, the release of the Reserve Bank of Australia (RBA)’s minutes for April’s monetary policy will be the major event. The RBA’s minutes will dictate the mathematics behind the neutral stance opted by RBA Governor Philip Lowe. Also, the information about inflation in Australia will help the market participants to fine-tune their positions. Meanwhile, the Bank of Japan (BOJ) is expected to stick with its ultra-loose monetary policy despite a higher revision in the inflation forecasts as per Reuters. The agency further stated that the BOJ is expected to raise its fiscal 2022 inflation forecast to above 1.5% from the current 1.1% at the April meeting while downgrading the fiscal-2022 growth forecast from the current 3.8% expansion.