AUD/JPY near 110.70 in Europe on a fourth losing day as ME risk aversion weighs. Oil feeding Aussie inflation/RBA hike talk; Masu hawkish overnight; AU 10y ~5.27% and JP 10y ~2.93% stamped separate.
The Australian Dollar slipped further against the Japanese Yen on Thursday as Middle East risk aversion weighed on global risk sentiment.
AUD/JPY extends its losing streak for the fourth consecutive day, trading around 110.70 during European hours on Thursday.
Escalating Middle East conflicts and tanker attacks are weighing on risk sentiment, with Iran and the US striking tankers in the biggest wave of attacks on shipping since the war began — pushing oil higher and feeding inflationary pressures into Australia’s consumer prices. That keeps alive talk of another RBA hike this month after Deputy Governor Andrew Hauser’s ABC interview and Assistant Governor Sarah Hunter’s Tuesday warning that the bank may need to raise rates again if inflation proves more persistent.
Deutsche Bank: BoJ board member Kazuyuki Masu struck a hawkish tone overnight, indicating the central bank would “continue to raise the policy interest rate,” stressing that underlying inflation should not significantly exceed 2%. Soft prior BoJ poll + Masu package. Deutsche also notes Australia’s 10-year yield (+6.6 bps) is up to a post-2011 high of 5.27%, while Japan’s 10-year (+5.4 bps) is up to 2.93% — AU/JP stamps kept separate, not averaged.
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