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3 Jun 2015
AUD/JPY might dip lower towards 94 – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, believes that AUD/JPY might head lower after reaching 97.50/98.00 levels towards 94.00.
Key Quotes
“This week’s AUD/JPY bounce on the RBA statement isn’t likely to extend too much further. Australia’s H2 15 outlook for sub-trend growth and low inflation should keep markets pricing substantial risk of another RBA easing,”
“Meanwhile the BoJ’s ongoing pace of QE is aggressive, but there has been no indication that the BoJ is considering yet more expansive QE any time soon, despite the slump in Japan’s inflation rate. This should see USD/JPY at least consolidate near term. This suggests AUD/JPY runs out of steam into 97.50/98.00, drifting back to 94 multi-week, though probably no lower for now.”
Key Quotes
“This week’s AUD/JPY bounce on the RBA statement isn’t likely to extend too much further. Australia’s H2 15 outlook for sub-trend growth and low inflation should keep markets pricing substantial risk of another RBA easing,”
“Meanwhile the BoJ’s ongoing pace of QE is aggressive, but there has been no indication that the BoJ is considering yet more expansive QE any time soon, despite the slump in Japan’s inflation rate. This should see USD/JPY at least consolidate near term. This suggests AUD/JPY runs out of steam into 97.50/98.00, drifting back to 94 multi-week, though probably no lower for now.”