 Japanese Yen had a modest recovery in Asian session, accompanied by an uptick in 10-year JGB yield and Nikkei. This comes as BoJ Governor Kazuo Ueda continued to prepare the markets for more tightening ahead, by reiterating that another rate hike in July is a possibility. Additionally, Ueda emphasized the impact of the weak Yen on import prices and overall inflation. However, opinions are divided on the timing of BoJ's next rate hike after the historical move in March. Thus, Yen's recovery might remain limited until there is more clarity. Simultaneously, Australian Dollar edged higher following RBA's decision to keep interest rates unchanged at 4.35%, a move that was widely anticipated by the markets. RBA maintained its flexible stance, stating it is "not ruling anything in or out" regarding future rate changes. It believed that the board would need to wait at least until when Q2 inflation data is available before having a clearer idea on even the direction of the next move in interest rate, not to mention the timing... |
